Pro-Dex, Inc.Pro-Dex, Inc. Announces Fiscal 2023 Third Quarter and Nine-Month Results

04 May 2023
www.biospace.com
Financial Statement
IRVINE, CA / ACCESSWIRE / May 4, 2023 / PRO-DEX, INC. (NASDAQ:PDEX) today announced financial results for its fiscal 2023 third quarter ended March 31, 2023. The Company also filed its Quarterly Report on Form 10-Q for the third quarter of fiscal year 2023 with the Securities and Exchange Commission today. Quarter Ended March 31, 2023 Net sales for the three months ended March 31, 2023, increased $3.8 million, or 41%, to $13.1 million from $9.3 million for the three months ended March 31, 2022, due primarily to increased repair revenue of $3.2 million related to an enhanced repair program launched this fiscal year to upgrade the handpiece we sell our largest customer to its most current generation. Gross profit for the three months ended March 31, 2023, increased $953,000, or 33%, to $3.8 million from $2.9 million for the same period in fiscal 2022. The gross profit increase is consistent with our increase in net sales and is benefited by our resolution and agreement with our largest customer related to previously upgraded repairs. Additionally, we have continued to experience higher costs across much of our supply chain. Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended March 31, 2023, decreased slightly, by 5%, compared to the same period in fiscal 2022 mostly due to reduced general and administration expenses. Net income for the quarter ended March 31, 2023, was $1.3 million, or $0.36 per diluted share, compared to $462,000, or $0.12 per diluted share, for the corresponding quarter in fiscal 2022. Nine Months Ended March 31, 2023 Net sales for the nine months ended March 31, 2023, increased $6.0 million, or 20%, to $35.4 million from $29.4 million for the nine months ended March 31, 2022, due to increased repair revenue of $4.3 million related to the enhanced repair program described above, as well as an increase of $1.5 million in billable non-recurring engineering projects. Gross profit for the nine months ended March 31, 2023, decreased $299,000, or 3%, compared to the same period in fiscal 2022. The gross profit decline for the nine months ended March 31, 2023, is due in part to the enhanced repair program described above, which includes the advance replacement of many costly components of the handpiece, as well as higher costs across much of our supply chain. Operating expenses (which include selling, general and administrative, and research and development expenses) for the nine months ended March 31, 2023, decreased 9% to $5.2 million from $5.7 million in the prior fiscal year's corresponding period, mostly due to reduced non-cash stock based compensation expense recorded in general and administrative expenses. Net income for the nine months ended March 31, 2023 was $3.3 million, or $0.89, per diluted share, compared to $2.5 million, or $0.65 per diluted share, for the corresponding period in fiscal 2022. CEO Comments "We are pleased with our third quarter results, as we continue to demonstrate our ability to grow revenue while controlling operating expenses," said the Company's President and Chief Executive Officer, Richard L. ("Rick") Van Kirk. "We are tracking toward another record fiscal year from a revenue perspective, and we expect to have completed the transfer of all of our assembly and repairs operations to the Franklin facility in the fourth quarter." About Pro-Dex, Inc.Pro-Dex, Inc.: Pro-Dex, Inc.Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adoptive torque-limiting software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. Pro-DexPro-Dex also manufactures and sells rotary air motors to a wide range of industries. Pro-DexPro-Dex's products are found in hospitals and medical engineering labs around the world. For more information, visit the Company's website at . Statements herein concerning the Company's plans, growth, and strategies may include 'forward-looking statements' within the context of the federal securities laws. Statements regarding the Company's future events, developments, and future performance, (including, but not limited to, the anticipated commencement of operations at the Franklin facility and expected fiscal year revenue), as well as management's expectations, beliefs, plans, estimates, or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company's actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission. (tables follow) PRO-DEX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share amounts) March 31, 2023 June 30, 2022 ASSETS Current Assets: Cash and cash equivalents............................................... $ 2,088 $ 849 Investments.................................................................... 1,149 755 Accounts receivable, net of allowance for doubtful accounts of $2 and $0 at March 31, 2023 and at June 30, 2022, respectively................................................. 10,565 15,384 Deferred costs............................................................... 279 710 Inventory....................................................................... 15,145 12,678 Prepaid expenses and other current assets........................ 1,919 790 Total current assets..................................................... 31,145 31,166 Land and building, net........................................................ 6,273 6,343 Equipment and leasehold improvements, net........................ 5,162 4,833 Right of use asset, net......................................................... 1,968 2,248 Intangibles, net.................................................................. 87 118 Deferred income taxes, net................................................. 764 797 Investments....................................................................... 1,534 1,779 Other assets....................................................................... 42 42 Total assets.................................................................... $ 46,975 $ 47,326 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable........................................................... $ 3,068 $ 3,761 Accrued expenses........................................................... 2,425 2,751 Deferred revenue............................................................ 57 1,013 Income taxes payable...................................................... 1,480 544 Note payable.................................................................. 3,114 3,285 Total current liabilities................................................ 10,144 11,354 Lease liability, net of current portion.................................. 1,745 2,054 Notes payable, net of current portion.................................. 9,247 10,250 Total non-current liabilities......................................... 10,992 12,304 Total liabilities............................................................... 21,136 23,658 Shareholders' equity: Common shares; no par value; 50,000,000 shares authorized; 3,545,309 and 3,596,131 shares issued and outstanding at March 31, 2023 and June 30, 2022, respectively................................................................ 6,585 7,682 Retained earnings .......................................................... 19,254 15,986 Total shareholders' equity........................................... 25,839 23,668 Total liabilities and shareholders' equity................... $ 46,975 $ 47,326 PRO-DEX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Net sales................................................................. $ 13,079 $ 9,265 $ 35,448 $ 29,426 Cost of sales .......................................................... 9,268 6,407 26,058 19,737 Gross profit............................................................. 3,811 2,858 9,390 9,689 Operating expenses: Selling expenses..................................................... 24 20 146 79 General and administrative expenses................... 1,009 1,145 2,983 3,402 Loss on disposal of equipment.............................. - 14 - 14 Research and development costs.......................... 713 658 2,109 2,254 Total operating expenses....................................... 1,746 1,837 5,238 5,749 Operating income................................................... 2,065 1,021 4,152 3,940 Interest expense...................................................... (131 ) (112 ) (389 ) (349 ) Unrealized gain (loss) on marketable equity investments........................................................ (177 ) (275 ) 231 (427 ) Interest and other income...................................... 11 - 235 50 Gain on sale of investments.................................. - - 7 - Income before income taxes................................. 1,768 634 4,236 3,214 Income tax expense............................................... (455 ) (172 ) (968 ) (764 ) Net income............................................................. $ 1,313 $ 462 $ 3,268 $ 2,450 Basic net income per share: Net income......................................................... $ 0.37 $ 0.13 $ 0.91 $ 0.67 Diluted net income per share: Net income........................................................ $ 0.36 $ 0.12 $ 0.89 $ 0.65 Weighted average common shares outstanding: Basic................................................................... 3,548 3,626 3,580 3,645 Diluted................................................................ 3,623 3,749 3,656 3,774 Common shares outstanding................................. 3,545 3,618 3,545 3,618 CONTACT: Richard L. Van Kirk, Chief Executive Officer (949) 769-3200 SOURCE: Pro-Dex, Inc. View source version on accesswire.com:
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