TAMPA, Fla.--(Business Wire)--
SRI/Surgical Express, Inc. (SRI) (Nasdaq:STRC), a leading provider
of reusable surgical device reprocessing services supporting the
healthcare industry, today announced financial results for its fourth
quarter and year ended December 31, 2007.
For the fourth quarter of 2007, SRI Surgical reported total
revenue of $24,000,000, an increase of $159,000 over the fourth
quarter of 2006. The net loss for the fourth quarter of 2007 was
$1,617,000 or $0.26 per basic and diluted common share compared to a
net loss for the fourth quarter of 2006 of $634,000 or $0.10 per basic
and diluted common share. Revenues for the fiscal year ended December
31, 2007 were $94,200,000, compared to $93,800,000 for the fiscal year
ended December 31, 2006. The net loss for the fiscal year ended
December 31, 2007 was $3,193,000 or $0.50 per basic and diluted common
share compared to a net loss of $1,953,000, or $0.31 per basic and
diluted common share for the fiscal year ended December 31, 2006. The
fourth quarter of 2007 included a charge of approximately $796,000 to
increase the reserves for doubtful accounts and obsolete disposable
surgical products.
Gerald Woodard, Chief Executive Officer, said, "Having only been
on board a month, I see many opportunities for 2008. While we face
challenges, our fundamentals remain strong, including a growing
market, competitive products and services, and a supporting
infrastructure. My focus will be effective execution, operational
excellence and customer retention. I look forward to reporting our
progress to our shareholders throughout the year."
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.
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.
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SRI/SURGICAL EXPRESS, INC.
Condensed Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2007 2006 2007 2006
-------- -------- -------- --------
Revenues $23,956 $23,797 $94,201 $93,831
Cost of revenues 19,217 17,924 73,947 71,534
-------- -------- -------- --------
Gross profit 4,739 5,873 20,254 22,297
Distribution expenses 1,699 1,774 6,394 6,327
Selling and administrative expenses 5,378 4,681 17,775 17,574
-------- -------- -------- --------
Income (loss) from operations (2,338) (582) (3,915) (1,604)
Interest expense 317 292 1,385 1,206
Other income (92) --- (342) ---
-------- -------- -------- --------
Income (loss) before income
taxes (2,563) (874) (4,958) (2,810)
Income tax expense (benefit) (946) (240) (1,765) (857)
-------- -------- -------- --------
Net income (loss) $(1,617) $ (634) $(3,193) $(1,953)
======== ======== ======== ========
Basic earnings (loss) per common
share $ (0.26) $ (0.10) $ (0.50) $ (0.31)
======== ======== ======== ========
Weighted average common shares
outstanding, basic 6,339 6,339 6,399 6,338
======== ======== ======== ========
Diluted earnings (loss) per common
share $ (0.26) $ (0.10) $ (0.50) $ (0.31)
======== ======== ======== ========
Weighted average common shares
outstanding, diluted 6,339 6,339 6,399 6,338
======== ======== ======== ========
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SRI/SURGICAL EXPRESS, INC.
Condensed Balance Sheets
(In thousands)
(unaudited)
As of As of
December 31, December 31,
2007 2006
----------------- -----------------
Cash and cash equivalents $ 656 $ 283
Accounts receivable, net 11,613 11,390
Inventories, net 6,159 6,715
Prepaid expenses and other
assets, net 2,847 2,641
Reusable surgical products, net 19,416 20,954
Property, plant and equipment,
net 31,277 32,371
------------------ ------------------
Total assets $ 71,968 $ 74,354
================== ==================
Notes payable to bank $ 2,493 $ 2,497
Accounts payable 7,984 6,863
Accrued expenses 5,464 4,326
Mortgage payable 4,286 4,524
Bonds payable 7,060 7,720
Deferred tax liability, net 55 1,706
------------------ ------------------
Total liabilities 27,342 27,636
Shareholders' equity 44,626 46,718
------------------ ------------------
Total liabilities and
shareholders' equity $ 71,968 $ 74,354
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SRI Surgical, Tampa
Wallace Ruiz, Sr. Vice President and CFO
813-891-9550 Ext. 3177
wruiz@srisurgical.com
Copyright Business Wire 2008
