TOTOWA, N.J., May 8, 2007 (PRIME NEWSWIRE) -- Vital Signs, Inc. (Nasdaq:VITL) today announced sales and earnings for the second quarter ended March 31, 2007.
Income from continuing operations increased 21% to $8,781,000 for the second quarter of fiscal 2007 compared to $7,252,000 for the second quarter of fiscal 2006. Earnings from continuing operations per diluted share increased 18% to $.66 per share for the second quarter of fiscal 2007 compared to $.56 per share for the second quarter of fiscal 2006.
Net revenues for the second quarter of fiscal 2007 increased 6.5% to $50,393,000 compared to $47,298,000 in the comparable period last year.
Following are the net revenues by business segment for the second quarter of fiscal 2007 compared to the second quarter of fiscal 2006 (in thousands of dollars):
NET REVENUES BY BUSINESS SEGMENT
--------------------------------
FOR THE THREE MONTHS ENDED
MARCH 31,
--------------------------------
2007 2006 PERCENT
CHANGE
--------------------------------
Anesthesia $ 18,869 $ 18,410 2.5%
Respiratory/Critical Care 11,961 10,960 9.1%
Sleep 12,612 11,632 8.4%
Interventional
cardiology/radiology 6,951 6,296 10.4%
--------------------------------
Net Revenues $ 50,393 $ 47,298 6.5%
================================
Terry Wall, President and CEO of Vital Signs, commented, "I am pleased with this quarter's 21% earnings growth as it reflects the progress of our lean manufacturing initiatives. These projects have resulted in a gross margin improvement of 1.5%, primarily in our Anesthesia segment. Additionally, we are continuing to expand our in-house manufacturing of non-latex breathing bags, which will continue to generate cost savings for '07 and '08. I am also pleased with the 9.1% growth of our Respiratory/Critical Care segment which was especially rewarding after a period of low growth."
For the six-month period ended March 31, 2007, income from continuing operations increased 19.5% to $16,281,000 as compared to $13,626,000 for the comparable fiscal 2006 period. Diluted earnings per share from continuing operations increased 16.0% to $1.23 for the six-month period ended March 31, 2007 compared to $1.06 for the six-month period ended March 31, 2006.
Net revenues for the first six months of fiscal 2007 increased 6.2% to $96,055,000 as compared to $90,436,000 in the comparable period last year.
Following are the net revenues by business segment for the six months ended March 31, 2007 and 2006 (in thousands of dollars):
NET REVENUES BY BUSINESS SEGMENT
----------------------------------
FOR THE SIX MONTHS ENDED MARCH 31,
----------------------------------
2007 2006 PERCENT
CHANGE
----------------------------------
Anesthesia $ 36,577 $ 35,578 2.8%
Respiratory/Critical Care 23,281 21,505 8.3%
Sleep 23,358 21,807 7.1%
Interventional
cardiology/radiology 12,839 11,546 11.2%
----------------------------------
Net Revenues $ 96,055 $ 90,436 6.2%
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Mr. Wall added: "Our guidance for fully diluted earnings per share from continuing operations for fiscal 2007, has been adjusted to between $2.59 and $2.67 per share (GAAP), to reflect Pharma Tech becoming a discontinued operation in the first quarter of fiscal 2007."
Net cash provided from continuing operations for the six months ended March 31, 2007 was approximately $18.9 million as compared to net cash used of $11.8 million for the six months ended March 31, 2006.
On May 7, 2007, the Board approved an increase in the quarterly dividend to $0.10 per share payable on May 31, 2007 to shareholders of record on May 18, 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.
VITAL SIGNS, INC.
FINANCIAL HIGHLIGHTS
STATEMENT OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
MARCH 31, MARCH 31,
------------------- -------------------
2007 2006 2007 2006
-------- -------- -------- --------
Gross revenues $ 69,303 $ 64,205 $132,672 $123,536
Rebates (17,673) (15,704) (34,260) (30,837)
Other deductions (1,237) (1,203) (2,357) (2,263)
-------- -------- -------- --------
Net revenues 50,393 47,298 96,055 90,436
Cost of goods sold
and services
provided 23,337 22,628 44,917 43,156
-------- -------- -------- --------
Gross Profit 27,056 24,670 51,138 47,280
Expenses:
Selling, general
and administrative 12,721 12,418 24,627 24,083
Research and
development 1,727 1,739 3,572 3,397
Restructuring
charge -- -- -- --
Interest and other
(income)/expense,
net (955) (652) (1,779) (1,241)
-------- -------- -------- --------
Income from
continuing
operations
Before income
taxes and
minority interest 13,563 11,165 24,718 21,041
Provision for
income taxes 4,528 3,725 7,941 7,043
-------- -------- -------- --------
Income from
continuing
operations before
minority interest 9,035 7,440 16,777 13,998
Minority interest 254 188 496 372
-------- -------- -------- --------
Income from
continuing
operations 8,781 7,252 16,281 13,626
(Loss) Income from
discontinued
operations, net (180) 216 (386) 502
-------- -------- -------- --------
Net income $ 8,601 $ 7,468 $ 15,895 $ 14,128
======== ======== ======== ========
Earnings (loss) per
common share:
Basic:
Income per share
from continuing
operations $ 0.66 $ 0.56 $ 1.23 $ 1.07
Discontinued
operations (0.01) 0.02 (0.03) 0.04
-------- -------- -------- --------
Net earnings $ 0.65 $ 0.58 $ 1.20 $ 1.11
======== ======== ======== ========
Diluted:
Income per share
from continuing
operations $ 0.66 $ 0.56 $ 1.23 $ 1.06
Discontinued
operations (0.01) 0.02 (0.03) 0.04
-------- -------- -------- --------
Net earnings $ 0.65 $ 0.58 $ 1.20 $ 1.10
======== ======== ======== ========
Basic weighted
average number of
shares 13,220 12,898 13,219 12,743
Diluted weighted
average number of
shares 13,255 13,001 13,271 12,840
VITAL SIGNS, INC.
FINANCIAL HIGHLIGHTS
BALANCE SHEET HIGHLIGHTS:
(In Thousands)
------------
(Unaudited)
March 31,
------------------------------
2007 2006
------------------------------
Cash and cash equivalents $ 56,458 $ 20,732
Short Term Investments 81,943 87,158
Accounts Receivable 33,324 26,984
Inventory 20,747 19,387
Current Assets 215,077 178,916
Total Assets $ 321,601 $ 284,872
======= =======
Current Liabilities $ 14,957 $ 14,919
Total Liabilities 14,957 14,919
Shareholders equity $ 301,462 $ 265,806
======= =======
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