ABMC Reports Fourth Quarter and Year End 2016 Results

KINDERHOOK, N.Y.--()--American Bio Medica Corporation (OTCPK:ABMC) today announced financial results for the fourth quarter and year ended December 31, 2016.

Chief Executive Officer Melissa A. Waterhouse stated, “Organic growth continued to be challenging for ABMC in 2016 due to the continued price competitive environment. Gross profit for the year decreased slightly due to an inefficiency in the third quarter for 2016 but, from an annual perspective, the impact wasn’t significant. When compared to the fourth quarter of 2015, operational expenses in the fourth quarter 2016 were higher due to a reclassification of debt issuance costs in the fourth quarter of 2015, and increased expenses related to our application for a 510k marketing clearance. From an annual perspective, operational expenses were down; reductions in G&A and selling and marketing expense were partially offset by increased costs related to the 510k marketing clearance application.”

Waterhouse continued, “In late 2016, we started to take steps to reorganize and restructure our sales and marketing department. In addition, we are bringing on new products and service offerings to diversify our revenue stream. These new products and services (through relationships with third parties) include products for the detection of alcohol, alternative sample options for drug testing (such as lab based oral fluid testing and hair testing) as well as toxicology management services. We also expect to start offering customers lower-cost alternatives for onsite drug testing starting in the first half of 2017. And finally, we are reviewing our contract manufacturing operations in efforts to capitalize on offerings in that area. Even with all of these actions, we have continued to be as fiscally conservative as possible. We are poised for profitability, provided no extraordinary expenses occur and that our initiatives start to positively impact sales.”

Financial Highlights

  • Net sales in the fourth quarter of 2016 were $1,217,000 compared to $1,532,000 in the fourth quarter of 2015, a decrease of 20.6%. Net sales in 2016 were $5,609,000 compared to $6,317,000 in 2015, a decrease of 11.2%.
  • Operating loss was $121,000 in the fourth quarter of 2016 compared to an operating income of $67,000 in the fourth quarter of 2015. Operating loss in 2016 was $257,000 compared to an operating loss of $13,000 in 2015.
  • Net loss was $215,000 in the fourth quarter of 2016 compared to a net loss of $202,000 in the fourth quarter of 2015. Net loss was $345,000 in 2016 compared to net loss of $333,000 in 2015.

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® tests 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, including but not limited to our ability to obtain marketing clearance on our product for our intended markets, 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, 2015, 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 share

(financial tables follow)

 
American Bio Medica Corporation
Statements of Operation
    Three Months Ended Year Ended
December 31, December 31,
2016     2015     2016     2015
(unaudited) (unaudited) (unaudited)  
 
Net sales $ 1,217,000 $ 1,532,000 $ 5,609,000 $ 6,317,000
Cost of goods sold 678,000   919,000   3,119,000   3,462,000
Gross profit 539,000 613,000 2,490,000 2,855,000
Operating expenses:
Research and development 48,000 23,000 184,000 148,000
Selling and marketing 234,000 265,000 1,061,000 1,164,000
General and administrative 378,000   258,000   1,502,000   1,556,000
Total operating expenses 660,000 546,000 2,747,000 2,868,000
 
Operating income / (loss) (121,000) 67,000 (257,000) (13,000)
 
Other income/(expense) - net (92,000)   (268,000)   (84,000)   (318,000)
 
Net income / (loss) before tax (213,000) (201,000) (341,000) (331,000)
 
Income tax expense (2,000)   (1,000)   (4,000)   (2,000)
 
Net loss (215,000)   (202,000)   (345,000)   (333,000)
 
Basic & diluted loss per common share $ (0.01) $ (0.01) $ (0.01) $ (0.01)
 
Basic weighted average shares outstanding 27,463,265 25,676,976 27,463,265 25,676,976
Diluted weighted average shares outstanding 27,463,265 25,676,976 27,463,265 25,676,976
 

(Balance Sheets follow)

 
American Bio Medica Corporation
Balance Sheets
    December 31,     December 31,
2016

(unaudited)

2015
ASSETS
Current Assets
Cash and cash equivalents $ 156,000 $ 158,000

Accounts receivable, net of allowance for doubtful accounts of
$49,000 at December 31, 2016 and $50,000 at December 31, 2015

556,000

672,000

Inventory, net of allowance of $449,000 at December 31, 2016 and
$432,000 at December 31, 2015

1,582,000

1,746,000

Prepaid expenses and other current assets 92,000 40,000
Total current assets 2,386,000 2,616,000
Property, plant and equipment, net 824,000 910,000
Patents, net 93,000 67,000
Other assets 21,000 14,000
Deferred finance costs – line of credit, net 47,000 79,000
Total assets $ 3,371,000 $ 3,686,000
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 304,000 $ 373,000
Accrued expenses and other current liabilities 276,000 212,000
Wages payable 299,000 292,000
Line of credit 639,000 777,000
Current portion of long-term debt 75,000 75,000
Total current liabilities 1,593,000 1,729,000
Other liabilities 0 38,000
Related party note 0 124,000
Long term debt, net of current portion 753,000 834,000
Total liabilities 2,346,000 2,725,000
 
Stockholders' Equity:
Common stock 288,000 260,000
Additional paid-in capital 21,037,000 20,656,000
Accumulated deficit (20,300,000) (19,955,000)
Total stockholders’ equity 1,025,000 961,000
Total liabilities and stockholders' equity $ 3,371,000 $ 3,686,000

Contacts

American Bio Medica Corporation
Melissa A. Waterhouse, 800-227-1243, Ext 107
Chief Executive Officer

Contacts

American Bio Medica Corporation
Melissa A. Waterhouse, 800-227-1243, Ext 107
Chief Executive Officer