Wednesday, May 25, 2011

Medical Action (MDCI) Posts Q4, FY2011 Results with 48% Increase in Quarterly Revenues

Medical Action Industries Inc., a supplier of medical and surgical disposable products, today reported fourth quarter and fiscal 2011 results, impacted by raw material costs, adverse weather, and the company’s acquisition of AVID Medical Inc. in August, 2010.

Revenues for the fiscal 2011 fourth quarter were $105.2 million, a 48 percent increase over the $71.2 million reported for the fourth quarter of 2010. Revenues included $34.2 million in custom procedure tray sales generated by AVID Medical. Excluding sales of custom procedure trays, Medical Action’s revenues for the three months ended March 31, 2011, were $71.0 million.

The company reported net income for the fiscal 2011 fourth quarter at $1.0 million, or $0.07 per basic and diluted share, compared to $5.1 million, or $0.32 per basic and diluted share, reported for the comparable three months of fiscal 2010.

Revenues for the 12 months ended March 31, 2011, were $362.4 million, a 25 percent increase over $290.1 million reported in the comparable 12 months of 2010. Revenues for fiscal 2011 included $81.4 million in custom procedure tray sales generated by AVID Medical. Excluding sales of custom procedure trays, Medical Action’s revenues for the 12 months of fiscal 2011 were $281.0 million.

Medical Action reported net income for the 12 months ended March 31, 2011, at $4.3 million, or $0.27 per basic and diluted share, compared to the $16.8 million, or $1.04 per basic and $1.03 per diluted share, reported for the comparable prior year period.

Net income results for fiscal 2011 include an extraordinary loss of $1.4 million, or $(0.05) per basic and diluted share, from weather-related water damage at an off-site inventory storage warehouse.

“Our management team is focused on growing sales across each of our product lines, improving operational efficiencies and enhancing our product and service offerings. Our results of operations during the year were adversely affected by rising raw material costs and one-time expenses relating to acquisition transaction costs and weather-related water damage at one of our manufacturing facilities,” Paul D. Meringolo stated in the press release. “We believe that raw material costs, particularly resin and cotton, will continue to influence our gross margins in the near term. We have responded to rising raw material costs by implementing price increases where commercially practical and managing our operating expenses.”

For more information visit www.medical-action.com

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