TAMPA, Fla., Nov. 3, 2008 (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 third quarter ended September 30, 2008.
For the third quarter of 2008, SRI Surgical reported total revenue of $23,959,000, an increase of $808,000 from the third quarter of 2007. The net loss for the third quarter of 2008 was $173,000 or $0.03 per basic and diluted common share compared to a net loss of $645,000 or $0.10 per basic and diluted common share reported for the third quarter of 2007. For the first nine months of 2008, SRI Surgical reported total revenue of $73,041,000, an increase of $2,796,000 from the first nine months of 2007. Net loss for the first nine months of 2008 was $1,857,000 or $0.29 per basic and common diluted common share compared to net loss of $1,575,000 or $0.25 per basic and diluted common share reported for the first nine months of 2007. Our third quarter 2008 net loss reflects a $423,000 reduction in our provision for doubtful accounts for a customer that made substantial steps and their account is now current.
Gerald Woodard, Chief Executive Officer said, "We successfully refinanced the company during the quarter and now have a three-year credit facility that should provide stability as we continue our turn-around efforts."
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, one disposable products facility, 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 Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
---- ---- ---- ----
Revenues $ 23,959 $ 23,151 $ 73,041 $ 70,245
Cost of revenues 18,641 18,606 56,832 54,731
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Gross profit 5,318 4,545 16,209 15,514
Distribution expenses 1,855 1,554 5,475 4,695
Selling and administrative
expenses 3,385 3,745 12,042 12,397
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Income (loss) from operations 78 (754) (1,308) (1,578)
Interest expense 302 331 832 1,067
Other income (90) (128) (275) (250)
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Loss before income taxes (134) (957) (1,865) (2,395)
Income tax expense (benefit) 39 (312) (8) (820)
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Net loss $ (173) $ (645) $ (1,857) $ (1,575)
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Basic loss per common share $ (0.03) $ (0.10) $ (0.29) $ (0.25)
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Weighted average common
shares outstanding, basic 6,387 6,420 6,386 6,390
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Diluted loss per common share $ (0.03) $ (0.10) $ (0.29) $ (0.25)
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Weighted average common
shares outstanding, diluted 6,387 6,420 6,386 6,390
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SRI/SURGICAL EXPRESS, INC.
Condensed Balance Sheets
(In thousands)
As of As of
September 30, 2008 December 31, 2007
------------------ -----------------
(unaudited)
Cash and cash equivalents $ 2,185 $ 656
Accounts receivable, net 10,871 11,613
Inventories, net 5,768 6,159
Prepaid expenses and other
assets 2,373 2,847
Reusable surgical products, net 21,247 19,416
Property, plant and equipment,
net 30,482 31,277
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Total assets $72,926 $71,968
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Notes payable $ 5,334 $ 2,493
Accounts payable 8,429 7,984
Accrued expenses 4,861 5,464
Mortgage payable 4,282 4,286
Bonds payable 6,565 7,060
Deferred tax liability, net -- 55
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Total liabilities 29,471 27,342
Shareholders' equity 43,455 44,626
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Total liabilities and
shareholders' equity $72,926 $71,968
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