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Bovie Medical Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 14, 2012 06:05AM
Bovie Medical Corp. (BVX) filed Quarterly Report for the period ended 2012-09-30. Bovie Medical Corporation has a market cap of $58.6 million; its shares were traded at around $3.24 with a P/E ratio of 55 and P/S ratio of 2.3.
Highlight of Business Operations:During the three months ended September 30, 2012, we experienced increases in demand in both of our primary product line categories. The largest dollar sales increases occurred in our cauteries category amounting to approximately $301,000, or a 19.1% increase for the three months ended September 30, 2012 compared to the same period in 2011. The 4.0% sales increase experienced in our electrosurgical category during the three months ended September 30, 2012 compared to the same period in 2011, was mainly attributable to increased demand for our electrosurgical generators both internationally and with our domestic OEM customer amounting to approximately $160,000. We experienced a 6.7% decrease, or approximately $46,000, in our “other products” category sales for the three months ended September 30, 2012 when compared to the same period in 2011.
Sales during the nine months ended September 30, 2012 increased approximately $1.6 million or 8.3% compared to the same period in 2011. Our largest dollar sales increase which approximated $618,000 or 38% was in our “other products” category. This increase was also related to the sales trend of our new medical lighting systems and laproscopic instruments, amounting to increases of approximately $523,000 and $48,000 respectively. Some additional contributing factors to these increases were in various other products as well as engineering consulting services for which the combined net increase approximated $47,000 for the nine months ended September 30, 2012 as compared to the same period in 2011. The stronger demand for our OEM domestic electrosurgical generators we saw at the beginning of the year continued through the nine months ended September 30, 2012 and resulted in a 4.0% sales increase in our electrosurgical category, or approximately $513,000 when compared to the same period in 2011. Our trend of increased demand from our domestic customers for cauteries continued through the nine months ended September 30, 2012 amounting to approximately $461,000 or 9.8% when compared to the same period in 2011.
Our ten largest customers accounted for approximately 66% of net revenues for the nine months ended September 30, 2012 and 67% for the same period in 2011. At September 30, 2012 and 2011, our ten largest trade receivables accounted for approximately 62% and 67% of our net receivables, respectively. During the first nine months of 2012, two of our customers each accounted for 11% of total sales. No customer accounted for greater than 10% of our sales for the same period ending September 30, 2011.
Our gross profit for the nine months ended September 30, 2012 increased by approximately $461,000, or 5.7%, as compared to the same period in 2011. Although our gross profit was an increase in actual dollars it amounted to a 1% decrease as a percentage of sales, which was primarily attributable to higher sales of lower profit margin OEM generators during the period, lower sales of our higher profit margin generators sold through distribution during the period, a 70% cost of sales attributable to the additional medical lighting systems sales which we only began selling in the third quarter of 2011, and increases related to direct and indirect costs in the initial manufacture and roll out of our J-Plasma product line.
We currently have approximately $3.5 million outstanding under industrial revenue bonds which we previously used for the purchase and renovation of our Clearwater, Florida facility. These bonds were refinanced in October 2011 through PNC Bank, N.A. The bonds, which are being amortized over a 20-year term, balloon in November 2018 and bear interest at a fixed interest rate of 5.6%. Scheduled maturities of this indebtedness are $33,300, $137,300, $145,000, $153,100 and $161,700 for 2012, 2013, 2014, 2015 and 2016, respectively and approximately $2.8 million thereafter.
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