ABMC Reports Fourth Quarter and Year End 2013 Results

  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
 
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