Advertisement
"We are obviously very proud of FY2009 results, which reflect: ourstrength and relative immunity versus the global economic crisis; ourcontinued dominance of the world's IV Automation sector; and our resiliencein quickly overcoming the decision to terminate Devon and its short-termfinancial consequences. I'm also satisfied to see that while our direct IVRobotics competitors fail to even disclose financial results, with tens ofmillions of dollars in debt and massive lay-offs as their only availablepublic information, Health Robotics has no debt, has improved itscash-on-hand position ten-fold [$1.6M] year-over-year, and for the secondconsecutive year distributes in excess of two million US dollars in cashdividends to its shareholders" stated Werner Rainer, CEO of Health Robotics.
Advertisement
Gross Revenues in FY2009 were $15.1 million, a 31% increaseyear-over-year as the company began to record the benefits of itsmulti-product offering and continued to profit from its recurring revenuemodel and growth in both products and customer base.
Gross Margins including extraordinary items in FY2009 were $8 million, inline with the prior annual period, as the company recorded an extraordinarycharge of bad debt in connection with the termination of Devon. Not includingthe effects of the extraordinary Devon's items, Gross Margins in FY2009 were$10.7 million, a 32% increase year-over-year. Operating Expenses in FY2009were $3.4 million, a $1.3 million decrease year-over-year, as the companybenefited from consolidating intellectual property and research anddevelopment activities into a single location, and profiting from the costadvantages associated with in-sourcing of intellectual property andmanufacturing operations at Trieste as opposed to Loccioni Group'soutsourcing operations at Ancona.
EBIDTA Earnings in FY2009 including extraordinary items were $4.6million, a 38% increase year-over-year as the company recorded EBITDAEarnings of 37% of revenues versus 29% in the prior annual period. Notincluding the effects of extraordinary items, EBITDA Earnings in FY2009 were$7.2 million, a 117% increase year-over-year.
Net Profits including extraordinary items were $2.56 million, a 10.1%increase year-over-year [17% of revenues]. Excluding extraordinary items,Health Robotics' Net Profits in FY2009 were $4.9 million, a 115% increaseyear-over-year [34% of revenues].
"While it was obviously stressful to make drastic changes to ourdistribution channels and to take a $2.4 million extraordinary charge toearnings in FY2009, our decision to irrevocably terminate Devon wasconsistent with the importance to Health Robotics of customer satisfactionand the long-term success of the business over short-term financial gain.Devon was more preoccupied suing[1] and making legal threats to its owncustomers and investors than with staffing service levels to provide adequatecustomer support, while concurrently failing to pay Health Robotics during asix-month period for CytoCare leases and service fees in connection with itscustomer installations in America and China, hence our decision to terminateDevon's contracts for cause. We have now put this unfortunate situationbehind the company, without any lawsuits[2] ever filed against HealthRobotics by anyone anywhere in the world, and starting anew with fiscallyresponsible and customer-focused sales and service channels, such asMcKesson, SinoPharm, and HRCI. We will continue to assist as much as legallypossible the innocent victims of Devon's actions and omissions: hospitals whoare now unfortunately embarked in a trail of lawsuits and legal threats tothem by Devon's seeking payments from hospitals for services which Devondidn't perform and for which Devon did not pay to Health Robotics, as the baddebt write-offs on our financial statements (attached hereto) denote"concluded Mr. Rainer.
Additionally, Health Robotics reached many other important non-financialmilestones and success highlights during FY2009: we reached the 50-hospitalcustomer mark with CytoCare; we installed our second robot for hospitalpharmacies [i.v.STATION]; we successfully launched a new product [i.v. SOFT]to serve as a back-up to our CytoCare, I,v.STATION and TPNstation robots, andas the company's entry point into manual sterile compounding; we started thedevelopment of TPNstation; we launched the I.V. Room of the Futureinitiative, a joint-development project with selected hospitals to set up 10centers of I.V. Room excellence around the world (4 in the USA, 1 in Canada,3 in Europe, and 2 in Asia Pacific); we extended our global reach to 5continents and more than 20 countries; we were awarded ISO 9001:2008certification of quality; we translated our products to Czech, Japanese,French, Spanish, Chinese, Turkish, and German, and more importantly, wesuccessfully concluded the Safe Chemo project with European Union Governmentapproval, including peer-reviewed scientific research establishing the factthat CytoCare is a million times safer that manual compounding.
---------------------------------
[1] Devon Robotics LLC versus the Regents of the University ofPennsylvania. Court of Common Pleas, Philadelphia.
[2] The only litigation related matter (not a lawsuit) for HealthRobotics was a Devon-filed subpoena simply seeking information from HealthRobotics. This subpoena was quashed by US Federal Court in Las Vegas, evenordering Devon to pay for Health Robotics' legal expenses. US District Court,State of Nevada, Case 2:10-cv-00018-RLH-LRL.
Note a): Bad Debt Write-Off arising from the termination of Devon as thedistribution channel in North America and China, and Devon's unpaid balancefor CytoCare leases.
Note b): Extraordinary item: one-time legal and employee expenses arisingfrom Devon's abandonment of customers in North America and China, Devon'slay-offs of all USA-based employees, and Health Robotics stepping up to theplate, and responding to both Devon's and customers' requests for HealthRobotics' no-charge CytoCare customer support, during the eight-monthtransition of support responsibilities to McKesson Corporation.
About Health Robotics:
Health Robotics is the undisputed global leading supplier oflife-critical intra-venous medication robots, providing healthcare facilitiesin 5 continents with robotics technology and software automation solutions.Its world-leading solutions CytoCare(TM) [hazardous IVs], i.v.STATION(TM)[non-hazardous IVs], i.v.SOFT(TM) [workflow engine for manual compounding,powered by MEDarchiver], and TPNstation(TM) [totally-automated parenteralnutrition] have and will greatly contribute to ease hospitals' growingpressures to improve patient safety, increase throughput and contain costs.Through the effective and efficient production of sterile, accurate,tamper-evident and ready-to-administer IVs, Health Robotics' solutions helphospitals eliminate life-threatening drug-exchange errors, decrease othertherapy oversights and sterility risks, work more efficiently, reduce wasteand controlled substances' diversion, and diminish the gap between risingpatient volume/acuity and scarce nursing and pharmacy staff. For moreinformation, please visit http://www.health-robotics.comHEALTH ROBOTICS GmbH/S.r.l. (Fiscal Code 02493250217) UNAUDITED STATEMENT OF EARNINGS (Thousands of US Dollars) 2009 2008 EUR VAR % VAR ---------- ---------- ----------- ---------- Gross Revenues $15.061 $11.465 $3.597 31.4% Restructuring B/D (a) $2.630 $0 $2.630 DIV/0 Revenues Net of B/D $12.431 $11.465 $967 8.4% Cost of Goods Sold $4.403 $3.372 $1.031 30.6% Gross Margin $8.028 $8.092 ($64) (0.8%) ---------- ---------- ----------- ---------- GM% 53% 71% Operating Expenses General & Administrative $2.783 $3.727 ($944) (25.3%) Other $645 $1.029 ($385) (37.4%) ---------- ---------- ----------- ---------- Total Op. Expenses $3.427 $4.756 ($1.328) (27.9%) EBIDTA $4.601 $3.337 $1.264 37.9% ---------- ---------- ----------- ---------- EBIDTA % 37.0% 29.1% Interest Revenue $100 $99 $1 1% Restructuring Charge (b) $942 $0 $942 DIV/0 Income Taxes $1.200 $1.111 $89 8% Effective Tax Rate 32% 33% ---------- ---------- ----------- ---------- Net Earnings $2.560 $2.325 $235 10.1% ========== ========== =========== ========== NET PROFIT % 17% 20%
SOURCE Health Robotics
