SOURCE: Remedent, Inc.
DUERLE, BELGIUM–(Marketwire – July 15, 2010) – Remedent, Inc. (
international company specializing in research, development, and
manufacturing of oral care and cosmetic dentistry products, reported
results for the final quarter and for the year ended March 31, 2010 (in US
Dollars).
Net sales in the fourth quarter decreased 27% to $2.5 million from $3.4
million in the same year ago quarter. The decrease in sales was due to non
recurring license fees of approx $1 million received from Denmat in the
fourth quarter ended March 31, 2009.
Loss from operations in the fourth quarter was a loss of $111,138 $(0.01)
per share as opposed to a loss of $1,079,063 $(0.05) in the same year-ago
quarter, based upon 20 million weighted average basic shares outstanding.
Net loss for the year ended March 31, 2010 was $2.4 million or $(0.12) per
share, as compared with a loss of $3.0 million or $(0.15) per share for the
year ended March 31, 2009.
Cash and cash equivalents totaled $614,000 at March 31, 2010 as opposed to
$1.8 million at March 31, 2009.
Management Commentary
“Our sales strategy of shifting from our previous wholesale sales (B2B)
model via a distributor to a direct retail model (B2C) is beginning to take
shape. Included in our net loss of $111,000 for the fourth and final
quarter ended March 31, 2010, was a loss of $550,000 directly attributable
to our subsidiary Sylphar. The improved results are attributable to the
inclusion for the first time of our Asian operations into our consolidated
financial statements together with the gain realized from the sale of First
Fit. Sales at all our Spa locations, namely in Beijing, Hong Kong, Taiwan
and in Europe continue to exceed our expectations as sales continue to
climb during the first quarter of the next financial year,” said Guy De
Vresse the CEO of Remedent.
Conference Call Information
Remedent will host a conference call on July 20, 2010 at 11:00 a.m. Eastern
Standard time (8:00 a.m. Pacific time) to discuss these results and its
strategic plans for the future. A question and answer session will follow
management’s presentation. To participate in the call, dial the appropriate
number 5-10 minutes prior to the start time.
Date: Tuesday, July 20,2010 Time 11:00 a.m. Eastern time (8:00 a.m. Pacific time). Dial in number: 1-888-677-8749 International: 1-913-312-1482
A simultaneous web cast and replay of the call will be available through
July 31, 2010. The replay pass code is 8101477.
About Remedent
Remedent, Inc. specializes in the research, development, manufacturing and
marketing of oral care and cosmetic dentistry products. The company serves
professional dental industry with breakthrough technology for dental
veneers. These products are supported by a line of professional veneer
whitening and teeth sensitivity solutions. Headquartered in Belgium,
Remedent distributes its products to more than 35 countries worldwide. For
more information, go to www.remedent.com.
Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release that are “forward-looking statements” are
based on current expectations and assumptions that are subject to risks and
uncertainties. Such forward-looking statements involve known and unknown
risks, uncertainties and other unknown factors that could cause Remedent’s
actual operating results to be materially different from any historical
results or from any future results expressed or implied by such
forward-looking statements. In addition to statements that explicitly
describe these risks and uncertainties, readers are urged to consider
statements that contain terms such as “believes,” “belief,” “expects,”
“expect,” “intends,” “intend,” “anticipate,” “anticipates,” “plans,”
“plan,” “projects,” “project,” to be uncertain and forward-looking. Actual
results could differ materially because of factors such as Remedent’s
ability to achieve the synergies and value creation contemplated by the
proposed transaction. For further information regarding risks and
uncertainties associated with Remedent’s business, please refer to the risk
factors described in Remedent’s filings with the Securities and Exchange
Commission, including, but not limited to, its annual report on Form 10-K
and quarterly reports on Form 10-Q.
REMEDENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three months ended Year ended
March 31, March 31,
2010 2009 2010 2009
----------- ----------- ----------- -----------
Net sales $ 2,472,815 $ 3,390,355 $ 8,247,940 $14,639,541
Cost of sales 952,189 1,650,315 4,322,680 6,614,723
----------- ----------- ----------- -----------
Gross profit 1,520,626 1,740,040 3,925,260 8,024,818
----------- ----------- ----------- -----------
Operating Expenses
Research and development 39,850 24,273 271,195 248,652
Sales and marketing 461,078 370,042 1,352,260 2,793,970
General and
administrative 1,313,812 1,639,656 4,524,324 5,312,192
Depreciation and
amortization 168,218 173,903 726,499 615,674
----------- ----------- ----------- -----------
TOTAL OPERATING
EXPENSES 1,982,958 2,207,874 6,874,278 8,970,488
----------- ----------- ----------- -----------
OPERATING LOSS (462,332) (467,834) (2,949,018) (945,670)
----------- ----------- ----------- -----------
NON-OPERATING (EXPENSE)
INCOME
Warrants issued pursuant
to Distribution Agreement -- -- (168,238) (4,323,207)
Gain on disposition of OTC -- -- -- 2,830,953
IMDS provision -- (300,000) -- (300,000)
Interest expense/other
deductions (50,596) (166,972) (171,364) (417,147)
Interest income/other
income 54,907 1,884 170,244 348,997
Other income -- -- (169,358) --
----------- ----------- ----------- -----------
TOTAL OTHER INCOME
(EXPENSES) 4,311 (465,088) (168,238) (1,860,404)
----------- ----------- ----------- -----------
LOSS FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES (458,021) (932,922) (3,118,376) (2,806,074)
Income tax expense (14,242) (32,633) (14,242) (32,633)
----------- ----------- ----------- -----------
NET LOSS FROM CONTINUING
OPERATIONS BEFORE
MINORITY INTEREST (472,263) (965,555) (3,132,618) (2,838,707)
NET (LOSS) INCOME
ATTRIBUTABLE TO
NON-CONTROLLING
INTERESTS (346,683) 114,208 (782,703) 114,208
----------- ----------- ----------- -----------
NET LOSS FROM CONTINUING
OPERATIONS, ATTRIBUTABLE
TO REMEDENT INC. COMMON
STOCKHOLDERS $ (111,138) $(1,079,763) $(2,349,915) $(2,952,915)
=========== =========== =========== ===========
LOSS PER SHARE
Basic and fully diluted $ (0.01) $ (0.06) $ (0.12) $ (0.15)
=========== =========== =========== ===========
WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic and fully
diluted 19,995,969 19,995,969 19,995,969 19,559,653
=========== =========== =========== ===========
OTHER COMPREHENSIVE
INCOME (LOSS):
Net loss attributable
to Remedent, Inc.
common stockholders $ (111,138) $(1,079,763) $(2,349,915) $(2,952,915)
Foreign currency
translation adjustment (102,949) (45,371) (9,464) (668,245)
----------- ----------- ----------- -----------
Total other comprehensive
loss (214,287) (1,125,134) (2,359,379) (3,621,160)
Less: comprehensive
(loss) income
attributable to
non-controlling
interest (42,623) (54,700) 7,130 (54,700)
----------- ----------- ----------- -----------
COMPREHENSIVE LOSS
ATTRIBUTABLE TO
REMEDENT INC.,
COMMON STOCKHOLDERS $ (171,664) $(1,070,434) $(2,366,509) $(3,566,460)
=========== =========== =========== ===========
REMEDENT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31,2010 March 31,2009
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 613,466 $ 1,807,271
Accounts receivable, net of allowance for
doubtful accounts of $65,845 at March 31,
2010 and $33,966 at March 31, 2009 806,931 3,208,120
Inventories, net 2,161,692 1,937,946
Prepaid expense 920,487 1,310,900
------------- -------------
Total current assets 4,502,576 8,264,237
------------- -------------
PROPERTY AND EQUIPMENT, NET 1,735,719 1,024,999
OTHER ASSETS
Long term investments and advances 750,000 750,000
Patents, net 246,992 163,106
Goodwill 699,635 --
------------- -------------
Total assets $ 7,934,922 $ 10,202,342
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
CURRENT LIABILITIES:
Current portion, long term debt $ 215,489 $ 78,798
Line of Credit 674,600 660,200
Accounts payable 1,932,684 1,398,420
Accrued liabilities 491,536 1,590,360
Due to related parties 268,484 --
Income taxes payable -- 39,339
------------- -------------
Total current liabilities 3,582,793 3,767,117
Long term debt less current portion 425,882 100,542
------------- -------------
Total liabilities 4,008,675 3,867,659
------------- -------------
EQUITY:
Preferred Stock $0.001 par value (10,000,000
shares authorized, none issued and
outstanding) -- --
Common stock, $0.001 par value; (50,000,000
shares authorized, 19,995,969 shares issued
and outstanding at March 31, 2010 and
19,995,969 shares issued and outstanding at
March 31, 2009) 19,996 19,996
Treasury stock, at cost; 723,000 and 723,000
shares at March 31, 2010 and March 31, 2009
respectively (831,450) (831,450)
Additional paid-in capital 24,742,201 24,106,055
Accumulated deficit (19,565,943) (17,216,028)
Accumulated other comprehensive income (loss)
(foreign currency translation adjustment) (650,059) (640,595)
Obligation to issue shares 97,500 --
------------- -------------
Total Remedent, Inc. stockholders' equity 3,812,245 5,437,978
------------- -------------
Non-controlling interest 114,002 896,705
------------- -------------
Total stockholders' equity 3,926,247 6,334,683
------------- -------------
Total liabilities and equity $ 7,934,922 $ 10,202,342
============= =============