ABMC Reports First Quarter 2014 Results Business Wire KINDERHOOK, N.Y. -- May 15, 2014 American Bio Medica Corporation (OTCQB:ABMC) today announced financial results for the three months ended March 31, 2014. Net sales for the first quarter of 2014 were $2,043,000, a decrease of $82,000, or 3.8%, when compared to net sales of $2,125,000 for the first quarter of 2013. Operating income for the first quarter of 2014 was $62,000, compared to an operating loss of $362,000 in the first quarter of 2013. Net income for the first quarter of 2014 was $9,000, or $0.00 per share, compared to a net loss of $424,000, or $0.02 per share reported in the first quarter of 2013. ABMC Interim Chief Executive Officer Melissa A. Waterhouse stated, “I am pleased to report our first quarter of net income for the first time in many years. From a sales perspective, organic growth partially offset the loss of oral fluid workplace sales in the first quarter 2014. Typically workplace oral fluid sales accounted for approximately 15% of our sales, but sales only declined 3.8% in the first quarter 2014. This is a result of our refocus on forensic oral fluid sales and sales of our urine-based products to other core markets.” Waterhouse continued, “Expenses are under control and we are continuing to take actions to bring a new urine-based drug test to market; this new product will be ideal for the clinical and pain management markets, as well as the criminal justice market. Strategic opportunities are still being considered and evaluated; this includes a possible restructure of debt which could further strengthen our financial condition.” 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, 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, 2013, 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 Condensed Statements of Operations (unaudited) For the three For the three months ended months ended March 31, 2014 March 31, 2013 Net sales $ 2,043,000 $ 2,125,000 Cost of goods sold 1,166,000 1,339,000 Gross profit 877,000 786,000 Operating expenses: Research and development 46,000 63,000 Selling and marketing 292,000 475,000 General and administrative 477,000 610,000 Total operating expenses 815,000 1,148,000 Operating income / (loss) 62,000 (362,000) Other expense (52,000) (61,000) Net income / (loss) before tax 10,000 (423,000) Income tax expense (1,000) (1,000) Net income / (loss) $ 9,000 $ (424,000) Basic & diluted income / (loss) per common $ 0.00 $ (0.02) share Weighted average shares outstanding – 23,168,155 22,166,336 basic Weighted average shares outstanding – 23,260,582 22,166,336 diluted (Condensed Balance Sheets follow) American Bio Medica Corporation Condensed Balance Sheets March 31, December 31, 2014 2013 (unaudited) ASSETS Current Assets Cash and cash equivalents $ 521,000 $ 646,000 Accounts receivable, net of allowance for doubtful accounts of 909,000 875,000 $52,000 at March 31, 2014 and $58,000 at December 31, 2013 Inventory, net of allowance of $399,000 at March 31, 2014 and 1,966,000 2,071,000 December 31, 2013 Current portion of deferred financing 72,000 51,000 Prepaid expenses and other current assets 124,000 96,000 Total current assets 3,592,000 3,739,000 Property, plant and equipment, net 1,062,000 1,090,000 Deferred finance costs 31,000 80,000 Patents, net 44,000 43,000 Other assets 14,000 14,000 Total assets $ 4,743,000 $ 4,966,000 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable 633,000 597,000 Accrued expenses and other current 252,000 314,000 liabilities Wages payable 255,000 233,000 Line of credit, net 814,000 987,000 Current portion of long-term debt, net 1,136,000 1,226,000 Total current liabilities 3,090,000 3,357,000 Other liabilities 148,000 147,000 Related party note 124,000 124,000 Total liabilities 3,362,000 3,628,000 COMMITMENTS AND CONTINGENCIES Stockholders’ Equity: Common stock 232,000 229,000 Additional paid-in capital 20,272,000 20,241,000 Accumulated deficit (19,123,000) (19,132,000) Total stockholders’ equity 1,381,000 1,338,000 Total liabilities and stockholders’ equity $ 4,743,000 $ 4,966,000 Contact: American Bio Medica Corporation Melissa A. Waterhouse Interim Chief Executive Officer 800-227-1243, Ext 107
ABMC Reports First Quarter 2014 Results
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