Milestone Scientific Reports Ten-Fold Increase in Domestic Dental Sales for the Third Quarter of 2017
LIVINGSTON, NJ–(Marketwired – November 15, 2017) – Milestone Scientific Inc. (NYSE: MLSS), a medical company that develops and commercializes a growing portfolio of proprietary injection technologies, today provided a business update and announced financial results for the third quarter and nine months ending September 30, 2017.
Leslie Bernhard, Chairman and Interim Chief Executive Officer of Milestone Scientific stated, “We saw a sharp improvement in domestic dental instrument and handpiece sales, increasing to $1.4 million in the third quarter of 2017 versus $0.1 million for the same period last year, which reflects the transition to our new distributor, Henry Schein, in the third quarter of 2016. Growth in domestic sales was offset by a decline in international sales due to marketing promotions we ran last year, and upfront stocking orders in both Europe and China. We expect to resume international growth in our dental division in 2018 as these distributors sell through inventory. We continue to gain traction through the exclusive product sales team at Henry Schein, which we believe will help further accelerate domestic revenue growth in 2018.”
“We are also gaining traction commercializing our first medical instrument following successful FDA marketing clearance of the CompuFlo™ Epidural Instrument earlier this year. We have engaged a number of the top key opinion leaders in the U.S., Europe and around the world, and have begun actively recruiting distribution partners. In fact, the CompuFlo® Epidural System has now been successfully utilized in over 600 epidural procedures, including both labor and delivery, as well as pain management, with no complications reported to date. Moreover, the CompuFlo® epidural instrument was presented on September 13, 2017 at the 36th Annual European Society of Regional Anaesthesia & Pain Therapy (ESRA) Congress 2017, in Lugano, Switzerland. The case, featured by a leading anesthesiologist in Europe, clearly demonstrated the value and effectiveness of CompuFlo® in identifying and locating the epidural space, especially in complicated cases. The success of our instrument is gaining widespread attention in the industry given the potential risk factors associated with a traditional epidural procedure.”
Total revenues for the three months ended September 30, 2017 and 2016 were approximately $2.9 million and $3.2 million, respectively. Total revenues decreased by approximately 10% which was principally related to the decrease in international sales of approximately $1.6 million, offset by the increase in domestic sales of approximately $1.2 million in 2017. International sales in 2017 decreased due to a reduction in shipments of handpieces and instruments to Milestone China. The decrease in Milestone China revenue is due to Milestone China working through its current inventories and adjusting its business model. Gross profit for the third quarter of 2017 was $1.8 million or 63% of revenue versus $1.7 million or 52% of revenue in the third quarter of 2016. Net loss attributable to common shareholders for the third quarter of 2017 was $(1.4) million, or $(0.04) per share, versus net loss of $(1.7) million, or $(0.06) per share, for the comparable period in 2016.
Total revenues for the nine months ended September 30, 2017 and 2016 were approximately $9.1 million and $9.0 million, respectively. Total revenues increased by approximately 1% which was principally related to the increase in domestic sales of handpieces by approximately $1.7 million in 2017. International sales in 2017 decreased by approximately $1.6 million over the same period in 2016 due to a reduction in shipments to Milestone China. The reductions in shipments to Milestone China is due to Milestone China working through inventory purchases from late 2016. Gross profit for the nine months ended September 30, 2017 was $5.7 million or 63% of revenue versus $5.3 million or 59% of revenue in the nine months ended September 30, 2016. Net loss attributable to common shareholders for the nine months ended September 30, 2017 was $(3.4) million, or $(0.10) per share, versus net loss attributable to common shareholders of $(4.2) million, or $(0.16) per share, for the comparable period in 2016.
Milestone Scientific’s executive management team will host a conference call at 8:30 AM Eastern Time on Thursday, November 16, 2017 to discuss the Company’s financial results for the third quarter ended September 30, 2017, as well as the Company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll free 800-281-7829 and entering the pass code 6331613 or on the Company’s website at www.milestonescientific.com. For those unable to participate at that time, a replay of the call will be archived on the Company’s website or can be accessed by dialing 888-203-1112 and entering the pass code 6331613. The replay will be available for 90 days.
About Milestone Scientific Inc.
Milestone Scientific Inc. (MLSS) is a leading medical research and development company that designs and patents innovative injection technology. Milestone’s computer-controlled systems make injections precise, efficient, and virtually painless. For more information please visit our website: www.milestonescientific.com.
Safe Harbor Statement
This press release contains forward-looking statements regarding the timing and financial impact of 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 for the year ended December 31, 2016. 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.
|MILESTONE SCIENTIFIC INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|September 30, 2017||December 31, 2016|
|Cash and cash equivalents||$||2,307,497||$||3,602,229|
|Accounts receivable, net of allowance for doubtful accounts of $10,000 as of September 30, 2017 and $5,000 as of December 31, 2016||1,999,636||802,384|
|Accounts receivable from related party||712,800||2,714,600|
|Notes receivable from financing transaction, short term||500,000||-|
|Advances on contracts||992,242||700,900|
|Prepaid expenses and other current assets||552,010||291,929|
|Total current assets||11,592,624||13,344,802|
|Furniture, fixtures & equipment net of accumulated depreciation of $703,191 as of September 30, 2017 and $659,144 as of December 31, 2016||119,729||159,026|
|Patents, net of accumulated amortization of $904,295 as of September 30, 2017 and $717,086 as of December 31, 2016||3,152,415||660,457|
|Notes receivable from financing transaction long term||650,000||-|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accounts payable related party||902,341||1,235,052|
|Accrued expenses and other payables||2,162,786||1,436,262|
|Deferred profit, related party||659,931||630,990|
|Total current liabilities||5,053,894||5,645,311|
|Deferral from financing transaction||1,400,000||-|
|Commitments and Contingencies|
|Series A convertible preferred stock, par value $.001, authorized 5,000,000 shares, 33,333 shares held in the treasury, and 7,000 shares issued and outstanding as September 30, 2017 and December 31, 2016||7||7|
|Common stock, par value $.001; authorized 50,000,000 shares;33,023,057 shares issued, 1,404,405 shares to be issued and 32,989,724 shares outstanding as of September 30, 2017; 30,457,224 shares issued, 1,270,481 shares to be issued and 30,423,891 shares outstanding as of December 31, 2016||34,426||31,720|
|Additional paid-in capital||86,442,802||82,761,503|
|Treasury stock, at cost, 33,333 shares||(911,516||)||(911,516||)|
|Total stockholders’ equity||8,787,163||8,500,223|
|Total liabilities and stockholders’ equity||$||15,541,646||$||14,181,640|
|MILESTONE SCIENTIFIC INC.|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended September 30,||Nine Months Ended September 30,|
|Product sales, net||$||2,853,813||$||3,186,596||$||9,066,550||$||8,973,726|
|Cost of products sold||1,044,540||1,517,561||3,320,411||3,675,552|
|Selling, general and administrative expenses||3,205,996||2,933,950||8,996,092||9,226,062|
|Research and development expenses||16,884||303,268||241,964||756,045|
|Total operating expenses||3,222,880||3,237,218||9,238,056||9,982,107|
|Loss from operations||(1,413,607||)||(1,568,183||)||(3,491,917||)||(4,683,933||)|
|Loss before provision for income tax and equity in net earnings of equity investments||(1,411,071||)||(1,569,029||)||(3,488,700||)||(4,686,715||)|
|Provision for income tax||(6,475||)||(16,522||)||(18,339||)||(80,147||)|
|Loss before equity in net earnings of equity investments||(1,417,546||)||(1,585,551||)||(3,507,039||)||(4,766,862||)|
|Loss on earnings from China Joint Venture||-||(253,451||)||(28,941||)||(554,766||)|
|Loss in equity investments||-||(253,451||)||(28,941||)||(554,766||)|
|Net loss attributable to noncontrolling interests||(6,605||)||(137,752||)||(138,915||)||(1,113,958||)|
|Net loss attributable to Milestone Scientific Inc.||$||(1,410,941||)||$||(1,701,250||)||$||(3,397,065||)||$||(4,207,670||)|
|Net loss per share applicable to common stockholders-|
|Weighted average shares outstanding and to be issued-|
David Waldman or Natalya Rudman
Crescendo Communications, LLC