TOTOWA, N.J., Aug. 8, 2007 (PRIME NEWSWIRE) -- Vital Signs, Inc. (Nasdaq:VITL) today announced sales and earnings for the third quarter ended June 30, 2007.
Income from continuing operations increased 12.5% to $8,733,000, for the third quarter of fiscal 2007 compared to $7,764,000 for the third quarter of fiscal 2006. Earnings from continuing operations per diluted share increased 12% to $.66 per share for the third quarter of fiscal 2007 compared to $.59 per share for the third quarter of fiscal 2006.
Net revenues for the third quarter of fiscal 2007 increased 6.6% to $51,735,000 compared to $48,544,000 in the comparable period last year.
Following are the net revenues by business segment for the third quarter of fiscal 2007 compared to the third quarter of fiscal 2006 (in thousands of dollars):
NET REVENUES BY BUSINESS SEGMENT
---------------------------------
FOR THE THREE MONTHS ENDED
JUNE 30,
---------------------------------
2007 2006 PERCENT
CHANGE
---------------------------------
Anesthesia $ 19,876 $ 18,379 8.2%
Respiratory/Critical Care 11,550 11,438 1.0%
Sleep 13,352 11,973 11.5%
Interventional cardiology/radiology 6,957 6,754 3.0%
---------------------------------
Net Revenues $ 51,735 $ 48,544 6.6%
=================================
For the nine month period ended June 30, 2007 income from continuing operations increased 16.9% to $25,014,000 as compared to $21,390,000 for the comparable fiscal 2006 period. Diluted earnings per share from continuing operations increased 13.9% to $1.88 for the nine month period ended June 30, 2007 compared to $1.65 for the nine month period ended June 30, 2006.
Net revenues for the first nine months of fiscal 2007 increased 6.3% to $147,790,000 as compared to $138,980,000 in the comparable period last year.
Following are the net revenues by business segment for the nine months ended June 30, 2007 and 2006 (in thousands of dollars):
NET REVENUES BY BUSINESS SEGMENT
---------------------------------
FOR THE NINE MONTHS ENDED JUNE 30,
---------------------------------
2007 2006 PERCENT
CHANGE
---------------------------------
Anesthesia $ 56,453 $ 53,957 4.6%
Respiratory/Critical Care 34,831 32,943 5.7%
Sleep 36,710 33,780 8.7%
Interventional cardiology/radiology 19,796 18,300 8.2%
---------------------------------
Net Revenues $147,790 $138,980 6.3%
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Terry Wall, President and CEO of Vital Signs commented, "We introduced two new Anesthesia products in July: Pi's Pillow(tm) and InfusaScan(tm). Pi's Pillow(tm) is a head positioning device invented by a physician to help position the patient's trachea for ease of intubation and increase patient comfort. InfusaScan(tm) is a new version of our market leading pressure infusor with a clear window that allows for bar code scanning as well as improved visibility of fluid levels.
"We have reduced our guidance to $2.55-2.58 per share. This revision is primarily the result of slower adoption of our strategy of providing CPAP units to the patients diagnosed with obstructive sleep apnea through our sleep centers. We remain confident that we will be able to increase our distribution of CPAP devices to our patients over the next four quarters, targeting 50% market penetration."
On August 3, 2007, Vital Signs extended its exclusive supply agreement with Respironics for six months and purchased related mask manufacturing equipment for $1.5 million. Mr. Wall commented, "This agreement gives us additional supply chain protection as we transition the production of anesthesia face masks, avoids litigation regarding ownership of the tooling and clarifies a non-compete to protect our mask business. Previously discussed cost savings will now be realized in the third quarter of fiscal 2008."
On August 2, 2007 the Board approved a quarterly dividend to $0.10 per share payable on August 31, 2007 to shareholders of record on August 17, 2007.
All non-historical statements in this press release, including Vital Signs' guidance with respect to fully diluted earnings per share from continuing operations for fiscal 2007, constitute Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements as a result of a variety of risks and uncertainties, including unanticipated delays in bringing products to market, regulatory approval of new products, market conditions, and competitive responses as well as other factors referred to by Vital Signs in its Annual Report on Form 10-K for the year ended September 30, 2006.
Vital Signs, Inc. and its subsidiaries design, manufacture and market primarily single-use medical products for the anesthesia, respiratory/critical care, achieving the number one market share position in the U.S. for five of its major product categories. Vital Signs also provides diagnostic services and therapeutic devices for the treatment of obstructive sleep apnea. Vital Signs is ISO 13485 certified and has CE Mark approval for its products. In 2006, Forbes Magazine named Vital Signs, Inc. as one of the "200 Best Small Companies in America" based on financial criteria.
VITL-G
VITAL SIGNS, INC.
FINANCIAL HIGHLIGHTS
STATEMENT OF INCOME
-------------------
(In Thousands, Except Per Share Amounts)
--------------------------------------
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ----------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Gross revenues $ 70,373 $ 66,259 $ 203,046 $ 189,757
Rebates (18,071) (16,629) (52,332) (47,466)
Other deductions (567) (1,086) (2,924) (3,311)
--------- --------- --------- ---------
Net revenues 51,735 48,544 147,790 138,980
Cost of goods sold
and services
provided 23,581 22,890 68,498 66,046
--------- --------- --------- ---------
Gross Profit 28,154 25,654 79,292 72,934
Expenses:
Selling, general
and
administrative 13,638 12,301 38,265 36,384
Research and
development 2,042 1,897 5,614 5,294
Restructuring
charge -- -- -- --
Interest and other
(income)/
expense, net (1,074) (753) (2,853) (1,994)
--------- --------- --------- ---------
Income from
continuing
operations
Before income taxes
and minority
interest 13,548 12,209 38,266 33,250
Provision for
income taxes 4,538 4,153 12,479 11,196
--------- --------- --------- ---------
Income from
continuing
operations before
minority interest 9,010 8,056 25,787 22,054
Minority interest 277 292 773 664
--------- --------- --------- ---------
Income from
continuing
operations 8,733 7,764 25,014 21,390
(Loss) Income
from discontinued
operations, net (108) 180 (494) 682
--------- --------- --------- ---------
Net income $ 8,625 $ 7,944 $ 24,520 $ 22,072
========= ========= ========= =========
Earnings (loss)
per common share:
Basic:
Income per share
from continuing
operations $ 0.66 $ 0.59 $ 1.89 $ 1.66
Discontinued
operations (0.01) 0.01 (0.04) 0.05
--------- --------- --------- ---------
Net earnings $ 0.65 $ 0.60 $ 1.85 $ 1.71
========= ========= ========= =========
Diluted:
Income per share
from continuing
operations $ 0.66 $ 0.59 $ 1.88 $ 1.65
Discontinued
operations (0.01) 0.01 (0.04) 0.05
--------- --------- --------- ---------
Net earnings $ 0.65 $ 0.60 $ 1.84 $ 1.70
========= ========= ========= =========
Basic weighted
average number
of shares 13,233 13,159 13,223 12,881
Diluted weighted
average number
of shares 13,274 13,208 13,272 12,962
VITAL SIGNS, INC.
FINANCIAL HIGHLIGHTS
BALANCE SHEET HIGHLIGHTS
------------------------
(In Thousands)
(Unaudited)
June 30,
---------------------------
2007 2006
---------------------------
Cash and cash equivalents $ 53,237 $ 29,409
Short Term Investments 82,395 88,687
Accounts Receivable 37,729 29,934
Inventory 20,525 18,933
Current Assets 216,538 191,630
Total Assets $ 335,014 $ 297,473
============ ============
Current Liabilities $ 17,723 $ 14,665
Total Liabilities 17,723 14,665
Shareholders equity $ 311,382 $ 278,369
============ ============