American Bio Medica Reports Fourth Quarter and Fiscal Year End 2006 Results
KINDERHOOK, N.Y. -- (BUSINESS WIRE) -- March 13, 2007 -- American Bio Medica Corporation (NASDAQ:ABMC) today announced financial results for the fourth quarter and the fiscal year ended December 31, 2006.
Net sales for the year ended December 31, 2006 were $13.8 million compared to $13.0 million for the same period in 2005, representing an increase in sales of 6.2%. Operating income for 2006 was $251,000 compared to an operating loss of $340,000 in 2005. The Company reported a net income of $196,000, or $0.01 per share, for 2006 compared to a net loss of $376,000, or $(0.02) per share, for 2005.
Net sales for the fourth quarter of 2006 were $3.18 million, an increase of $482,000, or 17.9%, from the $2.70 million reported for the fourth quarter of 2005. Operating income for the fourth quarter of 2006 was $107,000 compared to an operating loss of $564,000 for the fourth quarter of 2005. Net income for the fourth quarter of 2006 was $104,000, $0.00 per share, compared to a loss of $559,000, or $(0.03) per shares for the fourth quarter of 2005.
ABMC Chief Executive Officer, Stan Cipkowski, stated, "We are quite pleased with the year over year sales growth in the fourth quarter. Q4 is generally a flat quarter for us and almost 18% sales growth reflects our increased activity in the retail sector through our staffing agency customers. Year over year sales growth of over 6% and positive operating results for 2006 are okay but not good enough. We are committed to doing better."
Cipkowski added, "During 2007 our core business will continue to grow. More importantly, our expansion into new markets, including occupational health, hospitals and physicians, each with strategic partners will give us an opportunity for significant growth in sales and earnings.
Our R&D expense was very much in line with our expectations and down a bit from 2005 and our Sales and Marketing Expenses were down as a percentage of sales from the previous year. Though we do expect to incur some increased G&A costs in 2007 to comply with various reporting requirements, we remain confident that our efforts to control costs across the board will continue to be successful and will result in positive earnings in 2007."
Conference Call
The Company will host a conference call and webcast to discuss the FY2006 and Fourth Quarter results on Wednesday, March 14, 2007 at 11:00 a.m (EST). Investors and interested parties are invited to participate. The call will be broadcast live over the internet at www.abmc.com/investor/. The webcast will be listen-only mode. Listeners are requested to be online at least fifteen minutes early to register, as well as to download and install any complimentary audio software that might be required. To ask questions, you are invited to participate by phone. Within North America, dial 1-866-707-2828 and internationally dial 1-416-913-6270. The call will be available for replay at www.abmc.com/investor/ for 30 days.
For more information on ABMC or its drug testing products, please visit www.abmc.com
About American Bio Medica Corporation
American Bio Medica Corporation is a biotechnology company that develops, manufactures and markets accurate, cost-effective immunoassay diagnostic 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(R), Rapid One(R), Rapid TEC(R), RDS(R) InCup(R) and Rapid TOX(TM) products test for the presence or absence of drugs of abuse in urine, while OralStat(R) tests for the presence or absence of drugs of abuse in oral fluids. ABMC's Rapid Reader(R) 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, the following: continued acceptance of the Company's products, increased levels of competition in our industry, the acceptance of new products, inherent risks associated with product development and intellectual property rights, the Company's dependence on key personnel, third party sales and suppliers. 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-KSB for the fiscal year ended December 31, 2005, and quarterly reports on Form 10-QSB 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.
American Bio Medica Corporation
Statements of Operation
(in thousands, except earnings per share)
Three Months Year
Ended December 31, Ended December 31,
--------------------------------------------
(unaudited) (unaudited) (unaudited)
----------- ----------- ----------- --------
2006 2005 2006 2005
----------- ----------- ----------- --------
Net Sales $3,182 $2,700 $13,838 $13,015
Cost of goods sold 1,468 1,727 7,035 6,970
----------- ----------- ----------- --------
Gross profit 1,713 973 6,803 6,045
----------- ----------- ----------- --------
Operating expenses:
Research and development 149 162 606 683
Selling and marketing 781 644 3,325 3,345
General and
administrative 674 731 2,621 2,357
--------------------------------------------
Total operating
expenses 1,606 1,537 6,552 6,385
----------- ----------- ----------- --------
Operating income
(loss) 107 (564) 251 (340)
Other income / (expense) -
net (3) 0 (50) (35)
----------- ----------- ----------- --------
Income (loss)
before provision
for income taxes 104 (564) 201 (375)
Provision for income taxes 5 5 (1)
----------- ----------- ----------- --------
Net income (loss) $104 $(559) $196 $(376)
=========== =========== =========== ========
Dilutive earnings per
share $0.00 $(0.03) $0.01 $(0.02)
Weighted average shares
outstanding 21,720 21,360 21,484 21,310
Fully diluted shares
outstanding 21,769 21,828 21,573 21,432
American Bio Medica Corporation
Balance Sheets
(in thousands)
December 31, December 31,
2006 2005
------------ ------------
ASSETS
Current Assets:
Cash and equivalents $641 $446
Receivables-net of allowance for doubtful
accounts of $105,000 at December 31, 2006
and 2005 1,313 1,370
Inventory, net of reserve for slow moving
and obsolete inventory of $250,000 at
December 31, 2006 and 2005 4,859 4,444
Prepaid expenses 103 109
Patent sublicense-current 62
------------ ------------
Total current assets 6,978 6,369
Property, plant and equipment - net 1,982 1,562
Other assets 57 7
------------ ------------
Total assets $9,017 $7,938
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $1,600 $1,510
Wages Payable 269 257
Note Payable 7
Current portion of long term debt and
unearned grant 193 39
------------ ------------
Total current liabilities 2,122 1,813
Patent sublicense non-current 50
Long-term debt 758 592
Unearned grant 50 60
------------ ------------
Total liabilities 2,980 2,465
------------ ------------
Stockholders' Equity:
Common stock 217 214
Paid-in capital 19,218 18,853
Accumulated deficit (13,398) (13,594)
------------ ------------
Total stockholders' equity 6,117 5,553
------------ ------------
Total liabilities and stockholders' equity $9,017 $7,938
============ ============
CONTACT: American Bio Medica Corporation
Stan Cipkowski
Chief Executive Officer
800-227-1243, Ext 106
SOURCE: American Bio Medica Corporation
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