Schick Technologies Reports Fourth Quarter and Fiscal Year-End 2004
Results LONG ISLAND CITY, N.Y., June 15 /PRNewswire-FirstCall/ --
Schick Technologies, Inc. (OTC:SCHK) (BULLETIN BOARD: SCHK) today
reported its financial results for the fiscal fourth quarter and
year ended March 31, 2004. Financial Highlights include: * Net
income increased 35% for the quarter and 53% for the year * Revenue
increased 37% for the quarter and 32% for the year * Cash increased
to $20.7 million at March 31, 2004 Revenues for the quarter were
$10.1 million, an increase of $2.8 million, or 37%, compared to
$7.3 million for the fourth quarter of 2003. Net income for the
quarter was $9.0 million, an increase of 35% as compared to net
income of $6.7 million in the same period last year. Income from
operations (which does not include interest income, other income,
interest expense and income tax benefits) for the fourth quarter
was $3.0 million, an increase of 133%, compared to $1.3 million for
the same period in fiscal 2003. The Company's results for the
fourth quarter and the full year were positively impacted by a
non-cash item, a net income tax benefit of $5.9 million in the
fourth quarter of fiscal 2004, as compared to a net income tax
benefit of $5.4 million in the fourth quarter of fiscal 2003. The
positive net income tax benefit to the Company during the periods
ended March 31, 2004 and March 31, 2003 resulted from a reduction
in its deferred tax asset valuation allowance in anticipation of
full utilization of its net operating loss carryforwards. Basic
Earnings Per Share for the fourth quarter was $0.76 compared to
$0.66 in the same period last year, and diluted EPS was $0.53
compared to $0.42 in the same period last year. Upon Greystone's
exercise of its outstanding warrants in March 2004, the Company
issued 4,527,716 unregistered shares to Greystone; these shares are
reflected in the diluted share calculation. Revenues for the twelve
months ended March 31, 2004 were $39.4 million, an increase of $9.6
million, or 32%, compared to $29.8 million for the previous year.
Net income for the twelve months was $18.1 million, an increase of
53% as compared with the Company's net income of $11.8 million for
the previous year. Income from operations (which does not include
interest income, other income, interest expense and income tax
benefits) for fiscal 2004 was $12.1 million, an increase of 82%,
compared to $6.6 million in fiscal 2003. The Company's fiscal 2004
results were positively impacted by the aforementioned net income
tax benefit. Basic EPS for the year was $1.69 compared to $1.17
last year and diluted EPS was $1.07 compared to $0.78 last year. At
March 31, 2004, the Company had $20.7 million in cash, cash
equivalents and short-term investments and $27.4 million in working
capital, as compared to $7.8 million in cash, cash equivalents and
short-term investments and $9.2 million in working capital at March
31, 2003. Jeffrey T. Slovin, President and Chief Executive Officer,
commented, "Our 2004 financial results were solid across the board.
Domestic dental product sales for the year were up 30% compared to
last year, while international dental product sales were up 64%
during the year. This reflected our continued focus on our core
domestic business and improving our international distribution
network. We continued to generate strong margins, with gross
margins reaching 71% and operating income reaching 31% for the
year. We believe the company's financial performance in the quarter
and for the entire fiscal year demonstrates the strength of our
strategy to deliver sustainable technologies and innovative
products that improve practitioner productivity and benefit the
patient." Schick Technologies, Inc. Conference Call Information:
Schick Technologies, Inc. will hold its quarterly conference call
on Tuesday, June 15, 2004 at 5:00 p.m. EDT. To access the call,
please dial 800-299-7635 (domestic) or 617-786-2901
(international), and enter passcode # 33262598. This conference
call will be broadcast live on the Internet at
http://www.fulldisclosure.com/ or http://www.streetevents.com/. An
audio digital replay of the call will be available from June 15,
2004, at approximately 7:00 p.m. EDT until Midnight EDT on June 22,
2004 by dialing 888-286-8010 (domestic) or 617-801-6888
(international) and using confirmation code # 33391355. A web
archive will be available for 30 days at
http://www.fulldisclosure.com/ and http://www.streetevents.com/.
This earnings release, and any other financial and statistical
information disclosed by the Company during the conference call
will be available in the "Investors" section of the Company's web
site at http://www.schicktech.com/. About Schick Technologies, Inc.
Schick Technologies, Inc., an ISO 9001 certified company, designs,
develops, and manufactures innovative digital radiographic imaging
systems and devices for the dental and medical markets. The
Company's products, which are based on proprietary digital imaging
technologies, create instant high- resolution radiographs and offer
significant advantages over conventional x-ray devices. The
Company's beliefs as to its anticipation of the full utilization of
its net operating loss carryforwards, and other information in this
announcement which is not historical, constitute forward- looking
statements as defined in the Private Securities Litigation Reform
Act of 1995. The matters discussed in this news release are subject
to various factors which could cause actual events and results to
differ materially from such statements. Such factors include
uncertainties as to the future sales volume of Schick Technologies'
products, the pending SEC civil action and U.S. Attorney
investigation, the possibility of changing economic, market and
competitive conditions, dependence on products, technological
developments, competition, market uncertainties, dependence on
distributors, ability to manage growth, fluctuation in results,
seasonality and other risks and uncertainties including those
detailed in the Company's filings with the Securities and Exchange
Commission. Schick Technologies, Inc. and Subsidiary Consolidated
Statements of Operations (In thousands, except share and per share
amounts) Three months ended Year ended March 31, 2004 2003 2004
2003 Revenue, net $10,092 $7,347 $39,393 $29,817 Cost of sales
2,994 2,209 11,310 9,369 Excess and obsolete inventory 185 - 185
259 Total cost of sales 3,179 2,209 11,495 9,628 Gross profit 6,913
5,138 27,898 20,189 Operating expenses: Selling and marketing 1,613
1,654 6,118 5,911 General and administrative 1,475 1,492 6,291
5,041 Research and development 793 689 3,301 2,598 Bad debt expense
- - 105 - Total operating expenses 3,881 3,835 15,815 13,550 Income
from operations 3,032 1,303 12,083 6,639 Other income (expense)
Other income (3) (4) 138 51 Gain on sale of investment - - - 45
Interest income 65 13 153 52 Interest expense (2) (81) (182) (322)
Total interest and other income (expense) 60 (72) 109 (174) Income
before income taxes 3,092 1,231 12,192 6,465 Income tax benefit
5,917 5,445 5,917 5,360 Net income $9,009 $6,676 $18,109 $11,825
Basic earnings per share $0.76 $0.66 $1.69 $1.17 Diluted earnings
per share $0.53 $0.42 $1.07 $0.78 Weighted average common shares
11,836,330 10,170,782 10,710,742 10,148,991 Weighted average common
shares (diluted) 17,129,496 15,868,163 16,864,488 15,143,999 Schick
Technologies, Inc. and Subsidiary Consolidated Balance Sheets (In
thousands, except share amounts) March 31, 2004 2003 Assets Current
assets Cash and cash equivalents $20,734 $7,100 Short-term
investments - 712 Accounts receivable, net of allowance for
doubtful accounts of $138 and $42, respectively 3,982 3,032
Inventories 3,057 3,039 Income taxes receivable 5 10 Prepayments
and other current assets 856 421 Deferred income taxes 6,481 2,590
Total current assets 35,115 16,904 Equipment, net 1,405 2,151
Goodwill, net 266 266 Deferred income taxes 5,679 2,940 Other
assets 278 349 Total assets $42,743 $22,610 Liabilities and
Stockholders' Equity Current liabilities Current maturity of
long-term debt $- $1,503 Accounts payable and accrued expenses
1,456 1,468 Accrued salaries and commissions 1,390 1,080 Income
taxes payable 142 4 Deposits from customers 13 31 Warranty
obligations 210 56 Deferred revenue 4,504 3,605 Total current
liabilities 7,715 7,747 Commitments and contingencies - -
Stockholders' equity Preferred stock ($0.01 par value; 2,500,000
shares authorized; none issued and outstanding) - - Common stock
($0.01 par value; 50,000,000 shares authorized: 15,026,470 and
10,206,425 shares issued and outstanding, at March 31, 2004 and
2003, respectively) 150 102 Additional paid-in capital 44,626
42,618 (Accumulated deficit) (9,748) (27,857) Total stockholders'
equity 35,028 14,863 Total liabilities and stockholders' equity
$42,743 $22,610 DATASOURCE: Schick Technologies, Inc. CONTACT:
Investor Relations of Schick Technologies, Inc., +1-718-937-5765;
or Cameron Associates, +1-212-245-8800, for Schick Technologies,
Inc. Web site: http://www.schicktech.com/
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