Exhibit 99.1
PRESS RELEASE
| For more information, contact: Wallace D. Ruiz, Chief Financial Officer SRI/Surgical Express, Inc. (813) 891-9550 |
FOR IMMEDIATE RELEASE |
SRI SURGICAL REPORTS RESULTS FOR
FOURTH QUARTER AND FISCAL YEAR 2007
TAMPA, FL— Monday, March 10, 2008 — SRI/Surgical Express, Inc. (SRI) (Nasdaq: STRC), a leading provider of reusable surgical device reprocessing services supporting the healthcare industry, today announced financial results for its fourth quarter and year ended December 31, 2007.
For the fourth quarter of 2007, SRI Surgical reported total revenue of $24,000,000, an increase of $159,000 over the fourth quarter of 2006. The net loss for the fourth quarter of 2007 was $1,617,000 or $0.26 per basic and diluted common share compared to a net loss for the fourth quarter of 2006 of $634,000 or $0.10 per basic and diluted common share. Revenues for the fiscal year ended December 31, 2007 were $94,200,000, compared to $93,800,000 for the fiscal year ended December 31, 2006. The net loss for the fiscal year ended December 31, 2007 was $3,193,000 or $0.50 per basic and diluted common share compared to a net loss of $1,953,000, or $0.31 per basic and diluted common share for the fiscal year ended December 31, 2006. The fourth quarter of 2007 included a charge of approximately $796,000 to increase the reserves for doubtful accounts and obsolete disposable surgical products.
Gerald Woodard, Chief Executive Officer said “Having only been on board a month, I see many opportunities for 2008. While we face challenges, our fundamentals remain strong, including a growing market, competitive products and services, and a supporting infrastructure. My focus will be effective execution, operational excellence and customer retention. I look forward to reporting our progress to our shareholders throughout the year.”
About SRI Surgical
SRI Surgical (www.srisurgical.com) provides central processing and supply chain management services to hospitals and surgery centers across the United States. SRI Surgical serves hospitals and surgery centers in 19 states from 10 reprocessing facilities, one disposable products facility, and four distribution centers located throughout the United States.
Forward-Looking Statements
The statements in this press release that are not historical, including statements regarding SRI Surgical’s beliefs, expectations, and strategies, constitute “forward looking statements” within the meaning of the federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Important factors that could cause the
differences are discussed in SRI Surgical’s reports on Forms 10-Q, 10-K, and 8-K that the Company periodically files with the Securities and Exchange Commission. These factors include SRI Surgical’s sales process and market acceptance of its products and services, SRI Surgical’s capital needs, its dependence on significant customers and a significant supplier, risks of a new product offering, and the competitive healthcare marketplace. SRI Surgical does not undertake to update any forward-looking statements in this press release. Copies of SRI Surgical’s SEC filings, including its annual report on Form 10-K and quarterly reports on Form 10-Q, may be obtained by contacting SRI Surgical’s investor relations department at (813) 891-9550 or at the Investors section of the SRI Surgical Website at www.srisurgical.com.
| FOR FURTHER INFORMATION: | Wallace Ruiz, Sr. Vice President and CFO SRI Surgical |
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| (813) 891-9550 Ext. 3177 | ||||
| wruiz@srisurgical.com |
SRI/SURGICAL EXPRESS, INC.
Condensed Statements of Operations
(In thousands, except per share data)
(unaudited)
| Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| Revenues |
$ | 23,956 | $ | 23,797 | $ | 94,201 | $ | 93,831 | ||||||||
| Cost of revenues |
19,217 | 17,924 | 73,947 | 71,534 | ||||||||||||
| Gross profit |
4,739 | 5,873 | 20,254 | 22,297 | ||||||||||||
| Distribution expenses |
1,699 | 1,774 | 6,394 | 6,327 | ||||||||||||
| Selling and administrative expenses |
5,378 | 4,681 | 17,775 | 17,574 | ||||||||||||
| Income (loss) from operations |
(2,338 | ) | (582 | ) | (3,915 | ) | (1,604 | ) | ||||||||
| Interest expense |
317 | 292 | 1,385 | 1,206 | ||||||||||||
| Other income |
(92 | ) | — | (342 | ) | — | ||||||||||
| Income (loss) before income taxes |
(2,563 | ) | (874 | ) | (4,958 | ) | (2,810 | ) | ||||||||
| Income tax expense (benefit) |
(946 | ) | (240 | ) | (1,765 | ) | (857 | ) | ||||||||
| Net income (loss) |
$ | (1,617 | ) | $ | (634 | ) | $ | (3,193 | ) | $ | (1,953 | ) | ||||
| Basic earnings (loss) per common share |
$ | (0.26 | ) | $ | (0.10 | ) | $ | (0.50 | ) | $ | (0.31 | ) | ||||
| Weighted average common shares outstanding, basic |
6,339 | 6,339 | 6,399 | 6,338 | ||||||||||||
| Diluted earnings (loss) per common share |
$ | (0.26 | ) | $ | (0.10 | ) | $ | (0.50 | ) | $ | (0.31 | ) | ||||
| Weighted average common shares outstanding, diluted |
6,339 | 6,339 | 6,399 | 6,338 | ||||||||||||
SRI/SURGICAL EXPRESS, INC.
Condensed Balance Sheets
(In thousands)
(unaudited)
| As of December 31, 2007 |
As of December 31, 2006 | |||||
| Cash and cash equivalents |
$ | 656 | $ | 283 | ||
| Accounts receivable, net |
11,613 | 11,390 | ||||
| Inventories, net |
6,159 | 6,715 | ||||
| Prepaid expenses and other assets, net |
2,847 | 2,641 | ||||
| Reusable surgical products, net |
19,416 | 20,954 | ||||
| Property, plant and equipment, net |
31,277 | 32,371 | ||||
| Total assets |
$ | 71,968 | $ | 74,354 | ||
| Notes payable to bank |
$ | 2,493 | $ | 2,497 | ||
| Accounts payable |
7,984 | 6,863 | ||||
| Accrued expenses |
5,464 | 4,326 | ||||
| Mortgage payable |
4,286 | 4,524 | ||||
| Bonds payable |
7,060 | 7,720 | ||||
| Deferred tax liability, net |
55 | 1,706 | ||||
| Total liabilities |
27,342 | 27,636 | ||||
| Shareholders’ equity |
44,626 | 46,718 | ||||
| Total liabilities and shareholders’ equity |
$ | 71,968 | $ | 74,354 | ||