Sharps Compliance Corp (SMED, Financial) filed Quarterly Report for the period ended 2010-03-31.
Sharps Compliance Corp has a market cap of $88.3 million; its shares were traded at around $6.06 with a P/E ratio of 7.77 and P/S ratio of 4.35.
Selling, general and administrative (“S, G & A”) expenses for the three months ended March 31, 2010 of $2.2 million, increased by $753 thousand, from S, G & A expenses for the three months ended March 31, 2009. The increase in S, G & A is primarily due to higher, (i) professional fees of $232 thousand (primarily due to contract sales personnel, patent preparation and filing expenses, legal fees related to the Ronald E. Pierce matter (See NOTE 3 of the Notes to the Condensed Consolidated Financial Statements), regulatory consulting and NASDAQ listing fees), (ii) costs related to increased sales, marketing, advertising and public relations activities of $157 thousand (including the launch of the Company s new Waste Conversion Process), (iii) compensation and related benefit expense related to personnel additions of $200 thousand (primarily sales and marketing related positions), (iv) recruiting fees of $78 thousand, (v) non-cash stock based compensation expense of $68 thousand (primarily due to the accrued quarterly expense associated with the award of 51,500 shares of restricted stock of Company common stock to non-employee directors as the equity portion of the fiscal year 2010 Board of Director compensation (vesting over fiscal year 2010) and the award of 210,000 additional stock options, in July 2009, to employees, including officers), and (vi) computer and systems-related expenses of $49 thousand (primarily due to an increase in locations and software support).
Total revenues for the nine months ended March 31, 2010 of $35.0 million increased by $21.4 million, or 157.2%, over the total revenues for the nine months ended March 31, 2009 of $13.6 million. Customer billings by market are as follows (in thousands):
The increase in revenues is primarily attributable to increased billings in the Government ($20.1 million), Retail ($1.9 million), Professional ($393 thousand), and Hospitality ($52 thousand) markets. The increases were partially offset by decreased billings in the Healthcare ($651 thousand), and Pharmaceutical ($444 thousand) markets. The increase in the Government market is a result of $20.0 million in billings related to the sale of the Company s Sharps®MWMS™ to an agency of the U.S. Government under the contract announced in February 2009. The customer billings in the Government market also included $142 thousand related to the support of the City of Chicago immunization program, $81 thousand related to the sales of the RxTakeAway as part of the State of Iowa funded program and $25 thousand related to the Company s U.S. Department of Veterans Affairs Pilot Program. The increase in the billings in the Retail market is a result of, (i) increased market and customer penetration, (ii) a strong 2009 flu shot season (i.e., purchases of the Sharps Recovery System™ (formerly known as the Sharps Disposal by Mail System®) by retail clinics and pharmacies who use the products to collect, store and properly treat syringes used to administer flu-related shots including H1N1) and (iii) increased purchases of the Sharps Recovery System™ solutions used to support community programs. The increase in the Professional market billings is due to the impact of the Company s recently launched outbound sales initiative as well as physician, dental, and veterinary offices becoming aware (through the efforts of the Company) of cost-effective alternatives to the traditional medical waste pick-up. The decrease in the Health Care market billings is related to the ordering patterns of the larger home healthcare customers as well as additional distributor incentives designed to drive future growth in this market. The decrease in Pharmaceutical market billings is due to the variability in timing associated with the Patient Support Programs the Company provides to the drug manufacturers.
primarily due to higher (i) compensation and benefit expense including payroll tax of $628 thousand (primarily due to increased number of employees (increase in year-over-year headcount of 15 of which 14 are focused on sales and marketing-related activities), (ii) non-cash, stock based compensation expense of $418 thousand (primarily due to the accrued quarterly expense associated with the award of 51,500 shares of restricted stock of Company common stock to non-employee directors as the equity portion of the fiscal year 2010 Board of Director compensation (vesting over fiscal year 2010) and the award of 410,000 additional stock options, in November 2008 and July 2009, to employees, including officers), (iii) professional fees of $384 thousand (primarily due to contract sales personnel, patent preparation and filing expenses, legal fees related to the Ronald Pierce arbitration (See NOTE 3 of Notes to the Condensed Consolidated Financial Statements), regulatory consulting, and NASDAQ listing fees), (iv) costs related to increased sales and marketing-related activities of $355 thousand primarily due to increased sales, advertising, and public relations costs (including the launch of the Company s new Waste Conversion Process), and (v) computer and systems-related expenses of $147 thousand (primarily due to an increase in locations and software support).
The Company generated net income of $10.5 million for the nine months ended March 31, 2010 compared to net income of $3.5 million for the nine months ended March 31, 2009. The increase in net income is a result of higher operating income (discussed above). The nine months ended March 31, 2009 were positively impacted by the reduction in the deferred tax valuation allowance of $1.8 million and corresponding credit to tax expense booked in December 2008 (see Note 6 of the Notes to the Condensed Consolidated Financial Statements).
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Sharps Compliance Corp has a market cap of $88.3 million; its shares were traded at around $6.06 with a P/E ratio of 7.77 and P/S ratio of 4.35.
Highlight of Business Operations:
The decrease in revenues is primarily attributable to decreased billings in the Government ($2.5 million), Healthcare ($300 thousand), Commercial ($48 thousand), and Agriculture ($47 thousand) markets. The decreases were partially offset by increased billings in the Pharmaceutical ($265 thousand), Retail ($197 thousand), and Professional ($158 thousand) markets. The decrease in the Government market is attributable to the transition from the product build out to the maintenance phase ofSelling, general and administrative (“S, G & A”) expenses for the three months ended March 31, 2010 of $2.2 million, increased by $753 thousand, from S, G & A expenses for the three months ended March 31, 2009. The increase in S, G & A is primarily due to higher, (i) professional fees of $232 thousand (primarily due to contract sales personnel, patent preparation and filing expenses, legal fees related to the Ronald E. Pierce matter (See NOTE 3 of the Notes to the Condensed Consolidated Financial Statements), regulatory consulting and NASDAQ listing fees), (ii) costs related to increased sales, marketing, advertising and public relations activities of $157 thousand (including the launch of the Company s new Waste Conversion Process), (iii) compensation and related benefit expense related to personnel additions of $200 thousand (primarily sales and marketing related positions), (iv) recruiting fees of $78 thousand, (v) non-cash stock based compensation expense of $68 thousand (primarily due to the accrued quarterly expense associated with the award of 51,500 shares of restricted stock of Company common stock to non-employee directors as the equity portion of the fiscal year 2010 Board of Director compensation (vesting over fiscal year 2010) and the award of 210,000 additional stock options, in July 2009, to employees, including officers), and (vi) computer and systems-related expenses of $49 thousand (primarily due to an increase in locations and software support).
Total revenues for the nine months ended March 31, 2010 of $35.0 million increased by $21.4 million, or 157.2%, over the total revenues for the nine months ended March 31, 2009 of $13.6 million. Customer billings by market are as follows (in thousands):
The increase in revenues is primarily attributable to increased billings in the Government ($20.1 million), Retail ($1.9 million), Professional ($393 thousand), and Hospitality ($52 thousand) markets. The increases were partially offset by decreased billings in the Healthcare ($651 thousand), and Pharmaceutical ($444 thousand) markets. The increase in the Government market is a result of $20.0 million in billings related to the sale of the Company s Sharps®MWMS™ to an agency of the U.S. Government under the contract announced in February 2009. The customer billings in the Government market also included $142 thousand related to the support of the City of Chicago immunization program, $81 thousand related to the sales of the RxTakeAway as part of the State of Iowa funded program and $25 thousand related to the Company s U.S. Department of Veterans Affairs Pilot Program. The increase in the billings in the Retail market is a result of, (i) increased market and customer penetration, (ii) a strong 2009 flu shot season (i.e., purchases of the Sharps Recovery System™ (formerly known as the Sharps Disposal by Mail System®) by retail clinics and pharmacies who use the products to collect, store and properly treat syringes used to administer flu-related shots including H1N1) and (iii) increased purchases of the Sharps Recovery System™ solutions used to support community programs. The increase in the Professional market billings is due to the impact of the Company s recently launched outbound sales initiative as well as physician, dental, and veterinary offices becoming aware (through the efforts of the Company) of cost-effective alternatives to the traditional medical waste pick-up. The decrease in the Health Care market billings is related to the ordering patterns of the larger home healthcare customers as well as additional distributor incentives designed to drive future growth in this market. The decrease in Pharmaceutical market billings is due to the variability in timing associated with the Patient Support Programs the Company provides to the drug manufacturers.
primarily due to higher (i) compensation and benefit expense including payroll tax of $628 thousand (primarily due to increased number of employees (increase in year-over-year headcount of 15 of which 14 are focused on sales and marketing-related activities), (ii) non-cash, stock based compensation expense of $418 thousand (primarily due to the accrued quarterly expense associated with the award of 51,500 shares of restricted stock of Company common stock to non-employee directors as the equity portion of the fiscal year 2010 Board of Director compensation (vesting over fiscal year 2010) and the award of 410,000 additional stock options, in November 2008 and July 2009, to employees, including officers), (iii) professional fees of $384 thousand (primarily due to contract sales personnel, patent preparation and filing expenses, legal fees related to the Ronald Pierce arbitration (See NOTE 3 of Notes to the Condensed Consolidated Financial Statements), regulatory consulting, and NASDAQ listing fees), (iv) costs related to increased sales and marketing-related activities of $355 thousand primarily due to increased sales, advertising, and public relations costs (including the launch of the Company s new Waste Conversion Process), and (v) computer and systems-related expenses of $147 thousand (primarily due to an increase in locations and software support).
The Company generated net income of $10.5 million for the nine months ended March 31, 2010 compared to net income of $3.5 million for the nine months ended March 31, 2009. The increase in net income is a result of higher operating income (discussed above). The nine months ended March 31, 2009 were positively impacted by the reduction in the deferred tax valuation allowance of $1.8 million and corresponding credit to tax expense booked in December 2008 (see Note 6 of the Notes to the Condensed Consolidated Financial Statements).
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