ABMC Reports Fourth Quarter and Year End 2014 Results
KINDERHOOK, N.Y. - March 30, 2015 - American Bio Medica Corporation (ABMC) today announced financial results for the fourth quarter and year ended December 31, 2014, and the completion of debt refinancing.
Chief Executive Officer Melissa A. Waterhouse stated, "2014 marked what we hope is the beginning of the turnaround for ABMC. While sales in 2014 were negatively impacted by the loss of oral fluid workplace sales and a decline in government sales, we were able to improve our financial condition and cash flow by further reducing costs and streamlining certain operations of the Company. Operating expenses decreased by over 30% in 2014 and our margins continued to improve even with continued price pressures in the market."
Waterhouse continued, "We continue to seek out and identify additional measures that can bring the Company to profitability. On the expense end, on December 31, 2014, we closed two of our three leased manufacturing facilities in New Jersey and consolidated strip-manufacturing operations into one facility at a cost of approximately $92,000; however, we will see the return on this investment within 1 year of the consolidation, and increased efficiency in manufacturing starting in early 2015. In addition, on March 26, 2015, we closed on a 5 year, $1.2 million dollar debt facility that will allow us to save money on interest costs beginning in the second quarter of 2015. The facility has an interest rate of 8% and refinances debt currently at rates of 15% ($723,000 in Debentures from 2008) and 8.25% (a mortgage of approximately $325,000). We expect to continue to make efforts to decrease our interest expense as we look for an alternative debt facility for our line of credit."
"2015 is expected to be a year of investment in selling and marketing. New products and innovation are the key to ABMC's growth in 2015 and beyond. To that end, in the first quarter of 2015, we launched our urine-based, all-inclusive drug test to criminal justice markets and our application for FDA marketing clearance for this product has been filed and is under FDA review. This product’s entry into the pain management and treatment markets will have a positive impact on sales but this market entry is dependent on the receipt of the FDA clearance. We also have a number of new assays planned in research and development. Development on one of the assays is nearly completed and barring any unexpected issues, product launch is expected later in 2015."
Net sales in the fourth quarter of 2014 were $1,681,000 compared to $2,133,000 in the fourth quarter of 2013, a decrease of 21.2%. Net sales in 2014 were $7,285,000 compared to net sales of $8,894,000 in 2013, a decrease of 18.1%.
Operating loss was $178,000 in the fourth quarter of 2014 compared to an operating loss of $271,000 in the fourth quarter of 2013. Operating loss in 2014 was $217,000 compared to an operating loss of $1,131,000 in 2013.
Net loss was $238,000 in the fourth quarter of 2014 compared to net income of $145,000 in the fourth quarter of 2013. Net loss was $490,000 in 2014 compared to net loss of $788,000 in 2013. Earnings in the fourth quarter of 2013 and the full year 2013 were positively impacted by the Company’s receipt of a key man insurance benefit within that quarter.
For more information on ABMC or its drug testing products, please visit www.abmc.com.
About American Bio Medica Corporation
American Bio Medica Corporation develops, 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® and Rapid STAT test 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, 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, 2013, 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 shares.
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Contact: American Bio Medica Corporation Melissa A. Waterhouse, (800) 227-1243, Ext 107 Chief Executive Officer