MTS Medication Technologies Inc. (MTSI, Financial) filed Quarterly Report for the period ended 2009-09-30.
MTS Medication Technologies is an international provider of medication compliance packaging systems designed to improve medication dispensing and administration. MTS manufactures automated packaging machines and related consumables for prescription medications and nutritional supplements. The Company serves institutional pharmacies in the long-term care and correctional facility markets, both domestically and internationally. Mts Medication Technologies Inc. has a market cap of $35.78 million; its shares were traded at around $5.52 with a P/E ratio of 18.4 and P/S ratio of 0.47.
Cost of sales for the three months ended September 30, 2009 was $12.0 million compared with $14.0 million during the same period of the prior fiscal year. Cost of sales as a percentage of sales decreased to 65.4% from 67.8% during the same period of the prior fiscal year primarily because the proportion of revenue associated with OnDemand machines, which have a higher cost of sales percentage than consumables, was lower during the current fiscal year.
Selling, general and administration expenses for the three months ended September 30, 2009 increased 16.4% to $5.7 million from $4.9 million during the prior fiscal year primarily due to approximately $900,000 in costs associated with the Merger.
Cost of sales for the six months ended September 30, 2009 was $23.2 million compared with $27.4 million during the same period of the prior fiscal year. Cost of sales as a percentage of sales decreased to 65.1% from 68.3% during the same period of the prior fiscal year. Cost of sales as a percentage of sales decreased primarily because the proportion of revenue associated with OnDemand machines, which have a higher cost of sales percentage than consumables, was lower during the current fiscal year.
Selling, general and administration expenses for the six months ended September 30, 2009 increased 14.4% to $10.7 million from $9.4 million for the prior fiscal year primarily due to approximately $1.3 million in costs associated with the Merger.
During the six months ended September 30, 2009, we had a net loss of $543,000 compared with net income of $929,000 during the same period of the prior fiscal year. Cash provided by operations increased to $2.8 million from $2.0 million during the six months ended September 30, 2009 and 2008, respectively, primarily due to decreases in inventory and decreases in accounts receivable collection days. We had working capital of $11.4 million at September 30, 2009 compared to $12.7 million at March 31, 2009 and $13.7 million at September 30, 2008. Our working capital has continued to decrease as our inventory for OnDemand machines has declined. As accounts receivable related to OnDemand sales have been collected, we have used the cash proceeds to pay down our long-term debt.
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MTS Medication Technologies is an international provider of medication compliance packaging systems designed to improve medication dispensing and administration. MTS manufactures automated packaging machines and related consumables for prescription medications and nutritional supplements. The Company serves institutional pharmacies in the long-term care and correctional facility markets, both domestically and internationally. Mts Medication Technologies Inc. has a market cap of $35.78 million; its shares were traded at around $5.52 with a P/E ratio of 18.4 and P/S ratio of 0.47.
Highlight of Business Operations:
Net sales for the three months ended September 30, 2009 decreased 11.3% to $18.4 million compared with $20.7 million during the same period of the prior fiscal year. This decrease is primarily attributable to a decrease in sales of OnDemand machines in the current year. During the three months ended September 30, 2009, the Company sold three OnDemand machines at prices totaling $1.3 million, compared to nine machines at prices totaling $5.1 million during the same period in the prior fiscal year. This decrease in sales was partially offset by an 10.4% increase in consumables sales.Cost of sales for the three months ended September 30, 2009 was $12.0 million compared with $14.0 million during the same period of the prior fiscal year. Cost of sales as a percentage of sales decreased to 65.4% from 67.8% during the same period of the prior fiscal year primarily because the proportion of revenue associated with OnDemand machines, which have a higher cost of sales percentage than consumables, was lower during the current fiscal year.
Selling, general and administration expenses for the three months ended September 30, 2009 increased 16.4% to $5.7 million from $4.9 million during the prior fiscal year primarily due to approximately $900,000 in costs associated with the Merger.
Cost of sales for the six months ended September 30, 2009 was $23.2 million compared with $27.4 million during the same period of the prior fiscal year. Cost of sales as a percentage of sales decreased to 65.1% from 68.3% during the same period of the prior fiscal year. Cost of sales as a percentage of sales decreased primarily because the proportion of revenue associated with OnDemand machines, which have a higher cost of sales percentage than consumables, was lower during the current fiscal year.
Selling, general and administration expenses for the six months ended September 30, 2009 increased 14.4% to $10.7 million from $9.4 million for the prior fiscal year primarily due to approximately $1.3 million in costs associated with the Merger.
During the six months ended September 30, 2009, we had a net loss of $543,000 compared with net income of $929,000 during the same period of the prior fiscal year. Cash provided by operations increased to $2.8 million from $2.0 million during the six months ended September 30, 2009 and 2008, respectively, primarily due to decreases in inventory and decreases in accounts receivable collection days. We had working capital of $11.4 million at September 30, 2009 compared to $12.7 million at March 31, 2009 and $13.7 million at September 30, 2008. Our working capital has continued to decrease as our inventory for OnDemand machines has declined. As accounts receivable related to OnDemand sales have been collected, we have used the cash proceeds to pay down our long-term debt.
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