ABMC Reports Fourth Quarter and Year End 2013 Results Business Wire KINDERHOOK, N.Y. -- March 28, 2014 American Bio Medica Corporation (OTCQB:ABMC) today announced financial results for the fourth quarter and year ended December 31, 2013. Net sales in the fourth quarter of 2013 were $2,133,000 compared to $2,302,000 in the fourth quarter of 2012, a decrease of 7.3%. The Company attributes the sales decline in the fourth quarter to the inability to sell its oral fluid products in the workplace market (due to the unexpected not substantially equivalent determination by FDA in November 2013). Operating loss was $271,000 in the fourth quarter of 2013, compared to an operating loss of $501,000 in the fourth quarter of 2012. The improvement in operating results was primarily due to inventory disposals in the fourth quarter of 2012 that did not reoccur in the fourth quarter of 2013 (due to the Company’s efforts to closely monitor inventory levels along with manufacturing costs), offset by increases in G&A (financing costs) and R&D (FDA compliance costs). The Company reported net income of $145,000 in the fourth quarter of 2013, compared to a net loss of $564,000 in the fourth quarter of 2012. The improvement in earnings in the fourth quarter of 2013 is due to the Company’s receipt of a key man insurance benefit maintained on the Company’s former CEO Stan Cipkowski. Net sales for the year ended December 31, 2013 were 8,894,000, compared to net sales of $9,343,000 in the year ended December 31, 2012; representing a decrease of 4.8%. The sales decline was attributed to the loss of workplace oral fluid sales in the fourth quarter of 2013, and continued uncertainty in the workplace and government markets. Operating loss for the year ended December 31, 2013 was $1,131,000, compared to an operating loss of $929,000 for the year ended December 31, 2012 due to increased financing costs and share based payment (non-cash) expense in 2013. Net loss for 2013 was $788,000, compared to net loss of $1,111,000 in 2012. The earnings improvement in 2013 is primarily due to the Company’s receipt of the key man insurance benefit. ABMC interim Chief Executive Officer Melissa A. Waterhouse stated, “Late 2013 was tough for ABMC; our longtime CEO passed away suddenly, we received an unexpected NSE letter from FDA and subsequently stopped selling our oral fluid product in the workplace market. The loss of these workplace sales and increased operating expenses (a material portion of which were non-cash charges, brokers fees related to debt financings and costs related to our oral fluid marketing clearance submission), resulted in a sizeable operating loss for 2013.” Waterhouse continued, “However, in the latter part of 2013, we also commenced a number of personnel and expense cuts to improve our financial condition and cash flow. The significant savings created by these reductions are not readily apparent in our 2013 results given their timing of implementation; but they are apparent now. In 2014, we are already taking actions to bring a new urine-based drug test to the clinical and possibly consumer market, and refocusing our sales efforts on the forensic and international markets for oral fluid. We are also exploring strategic opportunities, including possible restructure of debt, which could further strengthen our financial condition. ABMC continues to run smoothly and our objective remains to move the company forward toward profitability in 2014.” For more information on ABMC or its drug testing products, please visit www.abmc.com. About American Bio Medica Corporation American Bio Medica Corporation manufactures and markets accurate, cost-effective immunoassay test kits, primarily point of collection tests for drugs of abuse. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets. ABMC’s Rapid Drug Screen®, Rapid ONE®, RDS® InCup®, Rapid TOX® and Rapid TOX Cup® II test for the presence or absence of drugs of abuse in urine, while OralStat® and Rapid STAT™ test for the presence or absence of drugs of abuse in oral fluids. ABMC’s Rapid Reader® is a compact, portable device that, when connected to any computer, interprets the results of an ABMC drug screen, and sends the results to a data management system, enabling the test administrator to easily manage their drug testing program. This release may contain forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ, and such differences could be material. Such risks and uncertainties include, but are not limited to, risks and uncertainties related to the following: continued acceptance of our products, increased levels of competition in our industry, acceptance of new products, product development, compliance with regulatory requirements, including but not limited to our ability to obtain marketing clearance on our OralStat product, intellectual property rights, our dependence on key personnel, third party sales and suppliers, trading in our common shares may be subject to “penny stock” rules, our history of recurring net losses and our ability to continue as a going concern. There can be no assurance that the Company will be successful in addressing such risks and uncertainties and the Company assumes no duty to update any forward-looking statements based upon actual results. Investors are strongly encouraged to review the section entitled “Risk Factors” in the Company's annual report on Form 10-K for the year ended December 31, 2012, quarterly reports on Form 10-Q, and other periodic reports on file with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of the Company's common shares. (financial tables follow) American Bio Medica Corporation Statements of Operation Three Months Ended Year Ended December 31, December 31, 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) Net sales 2,133,000 $ 2,302,000 $ 8,894,000 $ 9,343,000 Cost of goods 1,222,000 1,853,000 5,322,000 5,999,000 sold Gross profit 911,000 449,000 3,572,000 3,344,000 Operating expenses: Research and 152,000 46,000 645,000 207,000 development Selling and 344,000 326,000 1,722,000 1,829,000 marketing General and 686,000 578,000 2,336,000 2,237,000 administrative Total operating 1,182,000 950,000 4,703,000 4,273,000 expenses Operating loss (271,000 ) (501,000 ) (1,131,000 ) (929,000 ) Other income/(expense) 419,000 (63,000 ) 345,000 (184,000 ) - net Net income / (loss) before 148,000 (564,000 ) (786,000 ) (1,113,000 ) tax Income tax 3,000 0 (2,000 ) 2,000 expense Net income / 145,000 $ (564,000 ) $ (788,000 ) $ (1,111,000 ) (loss) Basic & diluted income / (loss) $ 0.01 $ (0.03 ) $ (0.04 ) $ (0.05 ) per common share Basic weighted average shares 22,692,452 21,833,003 22,270,636 21,833,003 outstanding Diluted weighted average shares 22,807,001 21,833,003 22,270,636 21,833,003 outstanding (Balance Sheets follow) American Bio Medica Corporation Balance Sheets December 31, December 31, 2013 2012 (unaudited) ASSETS Current Assets Cash and cash equivalents $ 646,000 $ 89,000 Accounts receivable, net of allowance for doubtful accounts of $58,000 at December 875,000 810,000 31, 2013 and $60,000 at December 31, 2012 Inventory, net of allowance of $399,000 at December 31, 2013 and $261,000 at December 2,071,000 2,571,000 31, 2012 Current portion of deferred financing 51,000 0 Prepaid expenses and other current assets 96,000 50,000 Total current assets 3,739,000 3,520,000 Property, plant and equipment, net 1,090,000 1,192,000 Deferred finance costs 80,000 29,000 Patents, net 43,000 24,000 Other assets 14,000 14,000 Total assets $ 4,966,000 $ 4,779,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 597,000 $ 1,016,000 Accrued expenses and other current 314,000 174,000 liabilities Wages payable 233,000 231,000 Line of credit, net 987,000 321,000 Current portion of long-term debt, net 1,226,000 1,404,000 Total current liabilities 3,357,000 3,146,000 Other liabilities 147,000 145,000 Related party note 124,000 124,000 Total liabilities 3,628,000 3,415,000 Stockholders' Equity: Common stock 229,000 218,000 Additional paid-in capital 20,241,000 19,490,000 Accumulated deficit (19,132,000 ) (18,344,000 ) Total stockholders’ equity 1,338,000 1,364,000 Total liabilities and stockholders' equity $ 4,966,000 $ 4,779,000 Contact: American Bio Medica Corporation Melissa A. Waterhouse, 800-227-1243, Ext 107 Interim Chief Executive Officer
ABMC Reports Fourth Quarter and Year End 2013 Results
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