Moore Medical Announces Third Quarter 2003 Net Income NEW BRITAIN,
Conn., Oct. 27 /PRNewswire-FirstCall/ -- Moore Medical Corp. , a
leading multi-channel specialty marketer and distributor of
medical, surgical and pharmaceutical products to health care
professionals in non-hospital settings, today announced third
quarter 2003 earnings of $0.15 per diluted share, versus earnings
of $0.20 per diluted share in the third quarter of 2002. Net income
for the third quarter of 2003 was $0.5 million, compared to net
income of $0.6 million in the comparable period one year ago. Third
quarter net sales were $38.1 million, versus $37.0 million in the
previous year's third quarter. In the aggregate, sales growth fell
short of the Company's original expectations; however, the Company
realized sales growth in several of its specialty markets that were
the focus of investments in prior quarters. The Company's gross
profit margin percentage decreased to 26.8% from 27.7% in the same
quarter last year, as a result of continuing external price
pressures in certain markets and aggressive pricing associated with
gaining entry into competitively held new accounts. Sales and
marketing expenses were constant at $2.7 million for the two
quarters, which represent 7.0% and 7.3% of net sales for the third
quarter 2003 and 2002, respectively. The decrease in sales and
marketing expenses as a percentage of net sales reflects efficiency
gains and leveraging of resources in both sales and media
departments. General and administrative expenses increased $0.4
million, or 6.3%, to $6.8 million in the third quarter of 2003 from
$6.4 million in last year's third quarter, due to higher costs
related to net periodic pension expense, professional service fees,
property and casualty insurance premiums, and bad debt expense. For
the nine months ended September 27, 2003, the Company's net sales
increased 4.6% to $107.6 million compared with $102.9 million in
last year's comparable period. Net loss for the nine months was
($0.3) million, or ($0.08) per diluted share, compared with net
income of $1.1 million or $0.35 per diluted share during last
year's nine-month period. "Our focused multi-channel approach has
produced appreciable sales growth in select specialty markets and
this resulted in new multi-year contracted business," said Linda M.
Autore, president and chief executive officer. Ms. Autore
concluded, "We believe that our investments will result in improved
revenue growth and profitability during the remainder of fiscal
2003 and into 2004." About Moore Medical Moore Medical is an
Internet-enabled multi-channel marketer and distributor of medical,
surgical and pharmaceutical products to approximately 100,000
health care practices and facilities in non-hospital settings
nationwide, including: physicians; emergency medical technicians;
schools; correctional institutions; municipalities;
occupational/industrial health doctors and nurses; and other
specialty practice communities. Moore Medical also serves the
medical/surgical supply needs of 30 customer community affiliates.
The Company markets and serves its customers through direct mail,
industry-specialized telephone support staff, field sales
representatives, and the Internet. Its direct marketing and
distribution business has been in operation for 55 years. More
information about the Company can be found at
http://www.mooremedical.com/. "SAFE HARBOR" STATEMENT UNDER THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. This press
release contains statements about future events and expectations
that constitute forward-looking statements under the federal
securities laws. These statements are characterized by words such
as "believe," "may," "will," "could," "should," "would,"
"anticipate," "estimate," "expect," "intent," "project,"
"objective," "seek," "strive," "might," "likely result," "build,"
"grow," "plan," "goal," "expand," "position," or similar words.
Forward-looking statements involve risks and uncertainties
(including factors outside our control) that may cause our actual
results, performance or financial condition to differ materially
from any future results implied by such forward-looking statements.
Factors that could contribute to these differences include, but are
not limited to: the inability to generate adequate revenues and
income from our strategy to transform the Company to a
multi-channel e-commerce enabled business; changes in demand for or
supply of our products; online security breaches; disruptions in or
cost increases for third-party services or systems; intense
competition in health care product distribution; government
regulation of drug and medical device distribution, the Internet
and health care products and services; and changes in insurance
coverage of health care products and services. Further information
regarding factors that could affect our results and the statements
made herein are included in our filings with the Securities and
Exchange Commission. Financial Statements to Follow MOORE MEDICAL
CORP. & SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited Third Quarter First Three Quarters (Amounts in thousands,
except per share data) September 27, September 28, September
27,September 28, 2003 2002 2003 2002 Net sales $38,102 $37,032
$107,626 $102,909 Cost of products sold 27,878 26,777 78,423 74,484
Gross profit 10,224 10,255 29,203 28,425 Sales and marketing
expenses 2,680 2,699 9,158 7,968 General and administrative
expenses 6,750 6,437 20,323 18,508 Operating income (loss) 794
1,119 (278) 1,949 Interest expense, net 38 113 124 201 Income
(loss) before income taxes 756 1,006 (402) 1,748 Income tax
provision (benefit) 272 363 (145) 629 Net income (loss) $484 $643
$(257) $1,119 Basic net income (loss) per share $0.15 $0.20 $(0.08)
$0.35 Diluted net income (loss) per share $0.15 $0.20 $(0.08) $0.35
Basic common shares outstanding* 3,190 3,173 3,190 3,161 Diluted
common shares outstanding* 3,191 3,177 3,190 3,179 *weighted
average MOORE MEDICAL CORP. & SUBSIDIARY CONSOLIDATED BALANCE
SHEETS (Amounts in thousands) September 27, December 28, 2003 2002
Unaudited ASSETS Current Assets Cash $101 $100 Accounts receivable,
less allowances of $1,974 and $1,249, respectively 20,462 17,187
Inventories 12,004 11,230 Prepaid expenses and other current assets
1,249 1,216 Deferred income taxes 1,871 1,871 Total Current Assets
35,687 31,604 Noncurrent Assets Property, plant and equipment, net
5,986 6,254 Other assets 1,957 2,137 Total Noncurrent Assets 7,943
8,391 $43,630 $39,995 LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities Accounts payable $11,054 $5,794 Amounts due to
customers 1,857 2,342 Accrued expenses 1,620 1,723 Cash overdraft
1,281 1,632 Current portion long term debt 3,596 - Total Current
Liabilities 19,408 11,491 Deferred Income Taxes 855 855 Accrued
Pension 490 233 Long Term Debt - 4,281 Total Shareholders' Equity
22,877 23,135 $43,630 $39,995 Contacts: John M. Zinzarella, CPA
Moore Medical Corp. Vice President of Finance, Treasurer and Chief
Financial Officer 860-826-3655 Allyne Mills Rosica Mulhern
Strategic Public Relations 201-843-5600 DATASOURCE: Moore Medical
Corp. CONTACT: John M. Zinzarella, CPA, Vice President of Finance,
Treasurer and Chief Financial Officer, +1-860-826-3655, ; or Allyne
Mills of Rosica Mulhern Strategic Public Relations,
+1-201-843-5600, Web site: http://www.mooremedical.com/
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