SRI Surgical Reports Second Quarter 2009 Financial Results


TAMPA, Fla., Aug. 3, 2009 (GLOBE NEWSWIRE) -- SRI/Surgical Express, Inc. (Nasdaq:STRC), a leading provider of reusable surgical device reprocessing services supporting the healthcare industry, today announced financial results for the second quarter ended June 30, 2009.

For the second quarter of 2009, SRI Surgical reported total revenue of $24,617,000, a decrease of $496,000 from the second quarter of 2008. The net loss for the second quarter of 2009 was $704,000 or $0.11 per basic and diluted common share compared to a net loss of $390,000, or $0.06 per basic and diluted common share reported for the second quarter of 2008. For the first six months of 2009, SRI Surgical reported total revenue of $48,543,000, a decrease of $538,000 from the first half of 2008. Net loss for the first six months of 2009 was $1,598,000 or $0.25 per basic and common diluted common share compared to net loss of $1,684,000 or $0.26 per basic and diluted common share reported for the first half of 2008. The second quarter 2009 net loss was impacted by a non-recurring severance charge of $238,000.

Gerald Woodard, Chief Executive Officer said, "I am excited about the changes we continue to make to the overall positioning of SRI, which included us receiving the Champion for Change Award in late May. As a charter member of Practice Greenhealth, we were recognized by this award for our outstanding contributions to environmentally responsible health care."

About SRI Surgical

SRI Surgical (www.srisurgical.com) provides central processing and supply chain management services to hospitals and surgery centers across the United States. SRI Surgical serves hospitals and surgery centers in 19 states from 10 reprocessing facilities and four distribution centers located throughout the United States.

The SRI/Surgical Express, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4997

Forward-Looking Statements

The statements in this press release that are not historical, including statements regarding SRI Surgical's beliefs, expectations, and strategies, constitute "forward looking statements" within the meaning of the federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Important factors that could cause the differences are discussed in SRI Surgical's reports on Forms 10-Q, 10-K, and 8-K that the Company periodically files with the Securities and Exchange Commission. These factors include SRI Surgical's sales process and market acceptance of its products and services, SRI Surgical's capital needs, its dependence on significant customers and a significant supplier, risks of a new product offering, and the competitive healthcare marketplace. SRI Surgical does not undertake to update any forward-looking statements in this press release. Copies of SRI Surgical's SEC filings, including its annual report on Form 10-K and quarterly reports on Form 10-Q, may be obtained by contacting SRI Surgical's investor relations department at (813) 891-9550 or at the Investors section of the SRI Surgical Website at www.srisurgical.com.


                      SRI/SURGICAL EXPRESS, INC.
                  Condensed Statements of Operations
                (In thousands, except per share data)
                              (unaudited)

                                Three Months Ended   Six Months Ended
                                     June 30,            June 30,
                                ------------------  ------------------
                                  2009      2008      2009      2008
                                --------  --------  --------  --------
 Revenues                       $ 24,617  $ 25,113  $ 48,543  $ 49,081
 Cost of revenues                 19,273    19,266    38,165    38,191
                                --------  --------  --------  --------
   Gross profit                    5,344     5,847    10,378    10,890

 Distribution expenses             1,651     1,862     3,317     3,620
 Selling and administrative
  expenses                         4,320     4,207     8,489     8,657
                                --------  --------  --------  --------
   Loss from operations             (627)     (222)   (1,428)   (1,387)

 Interest expense                    149       254       323       529
 Other income                        (92)      (91)     (186)     (185)
                                --------  --------  --------  --------
  Loss before income taxes          (684)     (385)   (1,565)   (1,731)

 Income tax expense (benefit)         20         5        33       (47)
                                --------  --------  --------  --------
  Net loss                      $   (704) $   (390) $ (1,598) $ (1,684)
                                ========  ========  ========  ========

 Basic loss per common share    $  (0.11) $  (0.06) $  (0.25) $  (0.26)
                                ========  ========  ========  ========
 Weighted average common shares
  outstanding, basic               6,447     6,387     6,446     6,386
                                ========  ========  ========  ========
 Diluted loss per common share  $  (0.11) $  (0.06) $  (0.25) $  (0.26)
                                ========  ========  ========  ========
 Weighted average common shares
  outstanding, diluted             6,447     6,387     6,446     6,386
                                ========  ========  ========  ========

                      SRI/SURGICAL EXPRESS, INC.
                       Condensed Balance Sheets
                            (In thousands)

                                                As of        As of
                                               June 30,   December 31,
                                                 2009         2008
                                              (unaudited)
                                             ------------ ------------


 Cash and cash equivalents                     $    760     $    484
 Accounts receivable, net                        11,497       11,200
 Inventories, net                                 2,968        5,727
 Prepaid expenses and other assets                1,544        2,271
 Reusable surgical products, net                 19,599       20,577
 Property, plant and equipment, net              28,466       29,487
                                             ------------ ------------

   Total assets                                $ 64,834     $ 69,746
                                             ============ ============

 Notes payable                                 $  4,352     $  8,434
 Accounts payable                                 8,191        8,461
 Accrued expenses                                 5,923        5,121
 Mortgage payable                                 4,121        4,228
 Bonds payable                                      520          520
                                             ------------ ------------

   Total liabilities                             23,107       26,764

   Shareholders' equity                          41,727       42,982
                                             ------------ ------------

   Total liabilities and shareholders' equity  $ 64,834     $ 69,746
                                             ============ ============


            

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