ABMC Reports Third Quarter 2014 Results

KINDERHOOK, N.Y.--()--American Bio Medica Corporation (OTCQB: ABMC) today announced financial results for the three and nine months ended September 30, 2014,

Net sales for the third quarter of 2014 were $1,750,000, compared to $2,257,000 in the third quarter of 2013, representing a decrease of $507,000, or 22.5%. For the nine months ended September 30, 2014, net sales were $5,604,000, compared to $6,762,000 for the nine months ended September 30, 2013, representing a decrease of $1,158,000, or 17.1%.

ABMC Chief Executive Officer Melissa A. Waterhouse stated, “While I remain pleased with the continued year over year improvement in our operating results, I remain disappointed in our sales results. Our inability to sell our oral fluid in the workplace (which was typically 15-20% of our sales), and recent declines in government sales has created a challenging sales environment. Sales growth in the near future will be dependent on our ability to introduce our urine-based, all-inclusive drug test to the clinical and pain management markets, and our ability to provide this product to these markets is contingent on obtaining marketing clearance from the U.S. Food and Drug Administration. In the third quarter, we continued to take actions that will enable us to file the marketing clearance application in the current quarter. I believe this product, when cleared, will have a positive impact on our sales in 2015. Thereafter, further growth will be dependent on the development of new assays for market introduction in 2015, and increased contract manufacturing.”

The Company reported an operating loss of $(124,000) in the third quarter of 2014, compared to an operating loss of $(286,000) in the third quarter of 2014. Net loss for the third quarter of 2014 was $(211,000), or $(0.01) per share, compared to a net loss of $(213,000), or $(0.01) per share in the third quarter of 2013. Operating loss for the nine months ended September 30, 2014 was $(39,000), compared to an operating loss of $(860,000) in the nine months ended September 30, 2013. Net loss for the nine months ended September 30, 2014 was $(252,000), or $(0.01) per share, compared to a net loss of $(933,000), or $(0.04) per share in the nine months ended September 30, 2013.

Waterhouse continued, “The improvement in financial results in spite of sales declines is a result of continued examination of all expenses. To that end, in the third quarter of 2014, we began to take actions to partially consolidate manufacturing operations. More specifically, we are closing down two of the three leased units in New Jersey, and moving certain manufacturing operations up to our company-owned facility in New York. The remaining unit in New Jersey will continue to house bulk strip manufacturing and research and development. The estimated cost of partial consolidation will be approximately $80,000; these costs will result in a temporary increase in G&A expenses through the remaining months of 2014. However, as a result of this partial consolidation, starting in 2015 we will begin to see annual savings of $80,000 in site costs alone, and we expect increased manufacturing efficiency as well.”

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® 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.

(condensed financial tables follow)

AMERICAN BIO MEDICA CORPORATION
Condensed Statements of Operations
(unaudited)
 
  For the three   For the three   For the nine   For the nine
months ended months ended months ended months ended
  September 30, 2014     September 30, 2013     September 30, 2014     September 30, 2013
 
Net sales $ 1,750,000 $ 2,257,000 $ 5,604,000 $ 6,762,000
Cost of goods sold   1,027,000       1,351,000       3,213,000       4,101,000  
Gross profit   723,000       906,000       2,391,000       2,661,000  
 
Operating expenses:
Research and development 92,000 315,000 183,000 493,000
Selling and marketing 280,000 412,000 839,000 1,378,000
General and administrative   475,000       465,000       1,408,000       1,650,000  
Total operating expenses   847,000       1,192,000       2,430,000       3,521,000  
 
Operating loss   (124,000 )     (286,000 )     (39,000 )     (860,000 )
 
Other income / (expense)   (87,000 )     70,000       (212,000 )     (75,000 )
 
Loss before tax (211,000 ) (216,000 ) (251,000 ) (935,000 )
 
Income tax (expense) / benefit   0       3,000       (1,000 )     2,000  
 
Net loss $ (211,000 )   $ (213,000 )   $ (252,000 )   $ (933,000 )
 
Basic & diluted loss per common share $ (0.01 )   $ (0.01 )   $ (0.01 )   $ (0.04 )
 
Weighted average shares outstanding – basic and diluted  

23,466,785

     

22,166,336

     

23,268,792

     

22,128,623

 

(Condensed Balance Sheets follow)

American Bio Medica Corporation
Condensed Balance Sheets
  September 30,
2014

(unaudited)

  December 31,
2013
ASSETS
Current Assets
Cash and cash equivalents $ 433,000 $ 646,000

Accounts receivable, net of allowance for doubtful accounts of

$45,000 at September 30, 2014 and $58,000 at December 31, 2013

782,000

875,000

Inventory, net of allowance of $428,000 at September 30, 2014 and

$399,000 at December 31, 2013

1,852,000

2,071,000

Current portion of deferred financing 50,000 51,000
Prepaid expenses and other current assets   168,000     96,000  
Total current assets 3,285,000 3,739,000
Property, plant and equipment, net 976,000 1,090,000
Deferred finance costs 10,000 80,000
Patents 53,000 43,000
Other assets   14,000     14,000  
Total assets $ 4,338,000   $ 4,966,000  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable 510,000 $ 597,000
Accrued expenses and other current liabilities 202,000 314,000
Wages payable 280,000 233,000
Line of credit, net 854,000 987,000
Current portion of long-term debt, net   855,000     1,226,000  
Total current liabilities 2,701,000 3,357,000
Other liabilities 68,000 147,000
Related party note 124,000 124,000
Long-term debt   247,000     0  
Total liabilities 3,140,000 3,628,000
 
COMMITMENTS AND CONTINGENCIES
Stockholders’ Equity:
Common stock 236,000 229,000
Additional paid-in capital 20,346,000 20,241,000
Accumulated deficit   (19,384,000 )   (19,132,000 )
Total stockholders’ equity   1,198,000     1,338,000  
Total liabilities and stockholders’ equity $ 4,338,000   $ 4,966,000  

Contacts

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

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