SOURCE: Milestone Scientific, Inc.

May 07, 2013 07:30 ET

Milestone Scientific Achieves Profitability for the First Quarter of 2013

Revenue Increases 29.6% to $2.5 Million; Domestic Sales Increase by 49.4% to $1.3 Million; Gross Margin Increases 189 Basis Points

LIVINGSTON, NJ--(Marketwired - May 07, 2013) - Milestone Scientific Inc. (OTCQB: MLSS), the recognized leader in advanced, computer-controlled injection technologies, today announced financial results for the three months ended March 31, 2013.

Leonard Osser, Chief Executive Officer of Milestone Scientific, stated, "We are pleased with our financial performance this quarter, as we achieved a 29.6% increase in revenue to $2.5 million in the first quarter of 2013 compared to $1.9 million in the same period last year. Domestic sales increased by 49.4% to $1.3 million in the first quarter of 2013, substantially higher than the same period last year. We have also seen an increase in international sales, driven by sales of handpieces. Our margins also expanded and we achieved modest profitability for the first quarter of 2013. As we grow our revenue and leverage our fixed expenses, we expect our cash flow and profitability will continue to improve."

Revenue for the three months ended March 31, 2013 was $2.5 million versus $1.9 million for the first quarter of 2012. The increase in product sales of $568,184 or 29.6% was primarily the result of increased domestic revenue. Domestic instrument sales increased by 32.8% to $208,139 in 2013 versus 2012 due to the increased demand at the distributor and group dental practice levels. In the domestic market, handpiece sales increased by $372,971 or 54.6%. On the international front, total revenue was $1.2 million, a 13.2% increase versus the same period in 2012. International handpiece sales increased by $242,712 or 38.7% in the first quarter of 2013 versus 2012. Gross profit for the first quarter of 2013 was $1.7 million or 67.4% of revenue versus $1.3 million or 65.5% of revenue in the first quarter of 2012. Net income for the first quarter of 2013 was $150,746 versus net loss of $355,181 for the comparable period in 2012. The return to profitability is attributable to an increase in sales and gross margin dollars, as well as a decrease in selling, general and administrative expenses.

Milestone's executive management team will host a teleconference on Tuesday, May 7, 2013 at 8:30 A.M. Eastern Time to discuss the company's financial results. The conference call can be accessed via telephone by dialing toll free 877-941-2333. For those unable to participate at that time, a replay of the call can be accessed by dialing 800-406-7325 and entering the pass code 4618486. The replay will be available for 90 days.

About Milestone Scientific Inc.
Headquartered in Livingston, New Jersey, Milestone Scientific is engaged in pioneering advanced computer-controlled drug delivery technologies for the medical and dental markets and currently sells its award-winning products through a global distribution network serving North and South America, Asia, Africa, Europe and the Middle East. For more information on the STA Single Tooth Anesthesia System® instrument and other innovative Milestone products, please visit the Company's web site found at www.milestonescientific.com.

SafeHarbor 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, 2012. 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.

(tables follow)

MILESTONE SCIENTIFIC INC.  
CONDENSED STATEMENTS OF OPERATIONS  
 (Unaudited)  
          
   Three Months Ended March 31,  
    2013    2012  
            
Product sales  $ 2,489,542   $ 1,921,358  
Cost of products sold    812,043     662,946  
 Gross profit    1,677,499     1,258,412  
Selling, general and administrative expenses    1,387,901     1,452,252  
Research and development expenses    121,837     39,311  
Total operating expenses    1,509,738     1,491,563  
Income (loss) from operations    167,761     (233,151 )
            
Other income (expenses)           
 Other income    17,543     -  
 Interest expense    (34,558 )   (42,403 )
 Interest-Amortization of debt issuance    -     (1,532 )
 Loss on Earnings from Medical Joint Venture    -     (78,095 )
 Total other income (expenses)    (17,015 )   (122,030 )
Net income (loss) applicable to common stockholders  $ 150,746   $ (355,181 )
Net income (loss) per share applicable to common stockholders -           
 Basic  $ 0.01   $ (0.02 )
 Diluted  $ 0.01   $ (0.02 )
Weighted average shares outstanding and to be issued -           
 Basic    16,351,894     15,338,367  
 Diluted    16,752,580     15,338,367  
            
            
   
 MILESTONE SCIENTIFIC INC.  
CONDENSED BALANCE SHEETS  
       
          
    March 31, 2013    December 31, 2012  
    (Unaudited)    (Audited)  
ASSETS           
Current Assets:           
 Cash and cash equivalents  $ 121,604   $ 165,249  
 
 
Accounts receivable, net of allowance for doubtful accounts of $178,481 as of March 31, 2013 and $179,259 as of December 31, 2012   
1,319,666
   
978,982
 
 Inventories, net    625,549     638,561  
 Advances on contracts    429,583     476,969  
 Prepaid expenses and other current assets    165,942     239,061  
  Total current assets     2,662,344     2,498,822  
Accounts receivable-long term, net of allowance for doubtful accounts of $112,762 as of March 31, 2013 and $167,971 as of December 31, 2012   
81,098
   
119,201
 
Advances on contracts    2,358,107     2,350,477  
Investment in Milestone Education LLC    50,000     -  
Furniture, Fixtures & Equipment net of accumulated depreciation of $463,109 as of March 31, 2013 and $458,708 as of December 31, 2012   
33,080
   
36,624
 
Patents, net of accumulated amortization of $439,931 as of March 31, 2013 and $420,556 as of December 31, 2012   
638,409
   
648,662
 
Other assets    7,317     7,317  
   Total assets  $ 5,830,355   $ 5,661,103  
            
LIABILITIES AND STOCKHOLDERS' EQUITY           
Current Liabilities:           
 Accounts payable  $ 2,030,272   $ 2,336,594  
 Accrued interest on Notes Payable    380,982     356,563  
 Accrued expenses and other payables    551,206     581,407  
  Total current liabilities    2,962,460     3,274,564  
            
Long-term Liabilities:           
 Notes Payable    450,000     450,000  
  Total long-term liabilities    450,000     450,000  
   Total liabilities    3,412,460     3,724,564  
            
Commitments and Contingencies           
            
Stockholders' Equity           
 
 
 
 
Common stock, par value $.001; authorized 50,000,000 shares; 16,781,726 shares issued, 1,655,317 shares to be issued and 16,748,393 shares outstanding as of March 31, 2013; 16,563,306 shares issued, 1,635,709 shares to be issued, and 16,529,973 shares outstanding as of December 31, 2012  18,437    18,199  
 Additional paid-in capital    64,890,596     64,560,224  
 Accumulated deficit    (61,579,622 )    (61,730,368 )
 Treasury stock, at cost, 33,333 shares    (911,516 )   (911,516 )
  Total stockholders' equity    2,417,895     1,936,539  
   Total liabilities and stockholders' equity  $ 5,830,355   $ 5,661,103  
            

Contact Information

  • Contact:
    David Waldman or Natalya Rudman
    Crescendo Communications, LLC
    Email: mlss@crescendo-ir.com
    Tel: 212-671-1020