KINDERHOOK, N.Y.--(BUSINESS WIRE)--American Bio Medica Corporation (ABMC.PK) today announced financial results for the fourth quarter and the year ended December 31, 2011.
Net sales in the fourth quarter of 2011 were $2,374,000, an increase of 1.5% from net sales of $2,340,000 in the fourth quarter of 2010. Operating income for the fourth quarter of 2011 was $27,000, compared to an operating loss of $290,000 in the fourth quarter of 2010. Net loss in the fourth quarter of 2011 was $15,000, or $0.00 per share, compared to a net loss of $342,000, or $0.02 per share, in the fourth quarter of 2010.
Net sales for the year ended December 31, 2011 were $9,272,000, compared to net sales of $10,421,000 for the year ended December 31, 2010; representing a decrease of 11.0%. Operating loss for 2011 was $146,000, compared to an operating loss of $534,000 in 2010. Net loss for 2011 was $345,000, or $0.02 per share, compared to a net loss of $750,000, or $0.03 per share, in 2010.
ABMC Chief Executive Officer, Stan Cipkowski stated, “I am very pleased to announce that after eleven quarters of sales going the wrong way - down from the same period the previous year - we saw an increase in year over year sales in the fourth quarter of 2011. Although the increase was modest, we believe that the fourth quarter of 2011 was the turnaround point as the trend is continuing in the current year.”
Cipkowski added, “Also very exciting is that we achieved positive operating profits in the last three quarters of 2011, though after interest and taxes we showed losses. We expect to refinance all debt in 2012 at more favorable interest rates and service terms, to continue to reduce and control expenses and to implement programs to increase manufacturing efficiencies resulting in improved gross margins.
Cipkowski continued, “We are also expanding our sales force, introducing new products, and continuing to partner with organizations that can enable us increase revenues and profits.”
For more information on ABMC or its drug testing products, including the ONLY CLIA-waived test for Buprenorphine, please visit www.abmc.com.
About American Bio Medica Corporation
American Bio Medica Corporation develops, manufactures and markets accurate, cost-effective immunoassay test kits, including some of the world’s most effective point of collection tests for drugs of abuse. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets. ABMC’s Rapid Drug Screen®, Rapid ONE®, RDS® InCup®, Rapid TOX® and Rapid TOX Cup® II test for the presence or absence of drugs of abuse in urine, while OralStat® and Rapid STAT™ test for the presence or absence of drugs of abuse in oral fluids. ABMC’s Rapid Reader® is a compact, portable device that, when connected to any computer, interprets the results of an ABMC drug screen, and sends the results to a data management system, enabling the test administrator to easily manage their drug testing program.
This release may contain forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ, and such differences could be material. Such risks and uncertainties include, but are not limited to, risks and uncertainties related to the following: continued acceptance of our products, increased levels of competition in our industry, acceptance of new products, product development, compliance with regulatory requirements, intellectual property rights, our dependence on key personnel, third party sales and suppliers, trading in our common shares may be subject to “penny stock” rules, our history of recurring net losses and our ability to continue as a going concern. There can be no assurance that the Company will be successful in addressing such risks and uncertainties and the Company assumes no duty to update any forward-looking statements based upon actual results. Investors are strongly encouraged to review the section entitled “Risk Factors” in the Company's annual report on Form 10-K for the year ended December 31, 2010, quarterly reports on Form 10-Q, and other periodic reports on file with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of the Company's common shares.
(financial tables follow)
| American Bio Medica Corporation | ||||||||||||||||
| Statements of Operation | ||||||||||||||||
| (in thousands, except earnings per share) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
| Net sales | $ | 2,374 | $ | 2,340 | $ | 9, 272 | $ | 10,421 | ||||||||
| Cost of goods sold | 1,377 | 1,521 | 5,396 | 6,313 | ||||||||||||
| Gross profit | 997 | 819 | 3,876 | 4,108 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 53 | 53 | 223 | 297 | ||||||||||||
| Selling and marketing | 458 | 497 | 1,777 | 2,030 | ||||||||||||
| General and administrative | 459 | 559 | 2,022 | 2,315 | ||||||||||||
| Total operating expenses | 970 | 1,109 | 4,022 | 4,642 | ||||||||||||
| Operating income / (loss) | 27 | (290 | ) | (146 | ) | (534 | ) | |||||||||
| Other income/(expense) - net | (38 | ) | (52 | ) | (189 | ) | (212 | ) | ||||||||
| Net loss before tax | (11 | ) | (342 | ) | (335 | ) | (746 | ) | ||||||||
| Income tax expense | (4 | ) | (10 | ) | (4 | ) | ||||||||||
| Net loss | $ | (15 | ) | $ | (342 | ) | $ | (345 | ) | $ | (750 | ) | ||||
| Basic & diluted loss per common share | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.03 | ) | ||||
| Basic & diluted weighted average shares outstanding | 21,745 | 21,745 | 21,745 | 21,745 | ||||||||||||
(Balance Sheets follow)
| American Bio Medica Corporation | ||||||||
| Balance Sheets | ||||||||
| (in thousands) | ||||||||
| December 31, | December 31, | |||||||
|
2011
(unaudited) |
2010 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 93 | $ | 37 | ||||
|
Accounts receivable, net of allowance for doubtful accounts of $66,000 at December 31, 2011 and $76,000 at December 31, 2010 |
883 |
743 |
||||||
| Inventory, net of allowance for slow moving and obsolete inventory of $401,000 at December 31, 2011 and $213,000 at December 31, 2010 |
3,239 |
3,604 |
||||||
| Prepaid expenses and other current assets | 61 | 121 | ||||||
| Total current assets | 4,276 | 4,505 | ||||||
| Property, plant and equipment, net | 1,304 | 1,409 | ||||||
| Debt issuance costs, net | 26 | 72 | ||||||
| Other assets | 30 | 29 | ||||||
| Total assets | $ | 5,636 | $ | 6,015 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | 631 | $ | 432 | |||||
| Accrued expenses and other current liabilities | 217 | 287 | ||||||
| Wages payable | 264 | 252 | ||||||
| Line of credit | 397 | 493 | ||||||
| Current portion of long-term debt and unearned grant | 882 | 140 | ||||||
| Total current liabilities | 2,391 | 1,604 | ||||||
| Other liabilities | 143 | 140 | ||||||
| Long-term debt | 608 | 1,480 | ||||||
| Related party note | 124 | 124 | ||||||
| Unearned grant | 0 | 10 | ||||||
| Total liabilities | 3,266 | 3,358 | ||||||
| Stockholders' Equity: | ||||||||
| Common stock | 217 | 217 | ||||||
| Additional paid-in capital | 19,386 | 19,328 | ||||||
| Accumulated deficit | (17,233 | ) | (16,888 | ) | ||||
| Total stockholders’ equity | 2,370 | 2,657 | ||||||
| Total liabilities and stockholders' equity | $ | 5,636 | $ | 6,015 | ||||