SOURCE: Milestone Scientific, Inc.

May 14, 2014 07:30 ET

Milestone Scientific Achieves Profitability for the First Quarter of 2014

Revenue Increases 5.3% to $2.6 Million; International Sales Increase by 18.3% to $1.4 Million; Net Income Increases by 29.2%

LIVINGSTON, NJ--(Marketwired - May 14, 2014) - 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, 2014.

Leonard Osser, Chief Executive Officer of Milestone Scientific stated, "We continue to advance our strategy of building a broad platform of computer-controlled injection technologies serving a wide array of medical applications. We are awaiting regulatory approval for both our epidural and intra-articular instruments. In the meantime, we are focused on establishing strategic partnerships with distributors worldwide to ensure a seamless rollout upon approval. As announced last year, we already have a distribution channel in place with one of largest specialty distributors of healthcare products in the United States to market and sell our epidural instrument. We look forward to creating similar agreements in other markets later this year. We also plan to announce this year the development of additional medical instruments that address large potential markets."

Mr. Osser continued, "As announced earlier this year, Aseptico, our exclusive dental distributor, will now only sell Milestone's STA Wand® handpieces directly to dentists and will no longer sell through third-party distributors. As a result, we will have greater transparency with our customers since Aseptico shares with us the names of all the dentists that use our instruments. By capturing that information, we are able to establish a direct relationship with the dentists, and based on experience, once we train dentists, we know they utilize a greater number of handpieces each year. As a result, we anticipate an increase in handpiece sales in the third and fourth quarters of this year as our former handpiece distributor sells through their remaining inventory. Nevertheless, we still achieved a 5.3% increase in revenue to $2.6 million in the first quarter of 2014. We expect to see a more significant increase in sales in the second half of 2014. International sales increased by 18.3% to $1.4 million in the first quarter of 2014. This was driven by an increase in international instrument sales due to promotions and incentives on instruments in 2014 to our worldwide distributors. I am also pleased to report we achieved another quarter of profitability and positive cash flow, while continuing to improve our balance sheet with shareholders' equity increasing to $5.9 million from $5.5 million at the end of the first quarter."

Revenue for the three months ended March 31, 2014 was $2.6 million versus $2.5 million for the first quarter of 2013. The increase in product sales of $131,292 or 5.3% was primarily the result of increased international revenue. Domestic instrument sales decreased by $49,431 in 2014 versus 2013 due to certain sales incentives and arrangements with our distributor. In the domestic market, handpiece sales decreased by $30,558 or 2.9%. On the international front, total revenue was $1.4 million, an 18.3% increase versus the same period in 2013. International instrument sales increased by $372,962 or 120.6% in the first quarter of 2014 versus 2013. Gross profit for the first quarter of 2014 was $1.7 million or 66.3% of revenue versus $1.7 million or 67.4% of revenue in the first quarter of 2013. Net income for the first quarter of 2014 was $194,384 versus net income of $150,746 for the comparable period in 2013. The increase in net income was attributable to an increase in sales, offset by a non-cash expense of $130,523 related to the Milestone Medical Inc. joint venture that was not incurred in 2013.

Milestone's executive management team will host a teleconference at 8:30 a.m. Eastern Time on Wednesday, May 14, 2014 to discuss the Company's financial results. The conference call will be available via telephone by dialing toll free 1-800-762-8779 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 1-800-406-7325 and entering the pass code 4683266. 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, 2013. 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 INCOME  
(Unaudited)  
          
   Three Months Ended March 31,  
   2014   2013  
            
Net sales  $2,620,834   $2,489,542  
Cost of products sold   882,997    812,043  
  Gross profit   1,737,837    1,677,499  
                   
Selling, general and administrative expenses   1,392,869    1,387,901  
Research and development expenses   15,720    121,837  
Total operating expenses   1,408,589    1,509,738  
Income from operations   329,248    167,761  
            
Other income (expenses)           
  Other income   -    17,543  
  Interest expense   (475 )  (34,558 )
  Loss from Medical Joint Venture   (130,523 )  -  
  Loss from Education Joint Venture   (3,416 )  -  
   Total other expenses, net   (134,414 )  (17,015 )
Net income  $194,834   $150,746  
                 
Net income           
  Basic  $0.01   $0.01  
  Diluted  $0.01   $0.01  
                 
Weighted average shares outstanding and to be issued -           
  Basic   17,787,352    16,351,894  
  Diluted   18,268,814    16,752,580  
            
                 
   
MILESTONE SCIENTIFIC INC.  
CONDENSED BALANCE SHEETS  
       
          
   March 31, 2014   December 31, 2013  
   (Unaudited)   (Audited)  
ASSETS           
Current Assets:           
  Cash and cash equivalents  $1,398,847   $1,147,198  
  Accounts receivable, net of allowance for doubtful accounts of $5,000 as of March 31, 2014 and $5,000 as of December 31, 2013   
1,221,375
   
1,532,856
 
  Inventories   1,744,946    1,321,652  
  Advances on contracts   1,763,280    727,478  
  Prepaid expenses and other current assets   242,717    150,451  
   Total current assets   6,371,166    4,879,635  
Advances on contracts   218,875    1,580,874  
Investment in Milestone Medical Inc   852,295    924,115  
Investment in Milestone Education LLC   38,666    42,082  
Furniture, Fixtures & Equipment net of accumulated depreciation of $458,614 as of March 31, 2014 and $476,884 as of December 31, 2013   
24,562
   
23,988
 
Patents, net of accumulated amortization of $518,095 as of March 31, 2014 and $498,502 as of December 31, 2013   
572,142
   
591,735
 
Other assets   12,917    12,917  
    Total assets  $8,090,623   $8,055,346  
            
LIABILITIES AND STOCKHOLDERS' EQUITY           
Current Liabilities:           
  Accounts payable  $1,217,135   $2,020,368  
  Customer advances   507,345    -  
  Accrued expenses and other payables   484,012    515,133  
   Total current liabilities   2,208,492    2,535,501  
            
Commitments and Contingencies           
            
Stockholders' Equity           
  Preferred Stock, par value $.001, 5,000,000 shares   -    -  
  Common stock, par value $.001; authorized 50,000,000 shares; 17,780,465 shares issued, 1,964,930 shares to be issued and 17,747,132 shares outstanding as of March 31, 2014; 17,759,540 shares issued, 1,839,930 shares to be issued and 17,726,207 shares outstanding as of December 31, 2013   


19,745
   


 19,599
 
  Additional paid-in capital   66,844,506    66,677,200  
  Accumulated deficit   (60,070,604 )  (60,265,438 )
  Treasury stock, at cost, 33,333 shares   (911,516 )  (911,516 )
   Total stockholders' equity   5,882,131    5,519,845  
    Total liabilities and stockholders' equity  $8,090,623   $8,055,346  
            
            

Contact Information

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