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Medical Action Industries Inc. (NASDAQ: MDCI), a supplier of medical and surgical disposable products, today reported fourth quarter and fiscal 2011 results.
Net sales for the fiscal 2011 fourth quarter were $105,273,000 an increase of $34,050,000 or 48%, above the $71,223,000 in net sales reported for the comparable three months of fiscal 2010. Net sales for the most recent quarter included $34,227,000 in custom procedure tray sales generated by AVID Medical, Inc. which was acquired by Medical Action on August 27, 2010. Excluding sales of custom procedure trays, Medical Action’s net sales for the three months ended March 31, 2011 were $71,046,000, which approximated net sales from the comparable prior year period.
Net income for the fiscal 2011 fourth quarter was $1,085,000 or $0.07 per basic and diluted share, compared to $5,194,000 or $0.32 per basic and diluted share reported for the comparable three months of fiscal 2010.
Net sales for the twelve months ended March 31, 2011 were $362,494,000 an increase of $72,348,000 or 25%, from the $290,146,000 in net sales reported for the comparable twelve months of fiscal 2010. Net sales for fiscal 2011 included $81,468,000 in custom procedure tray sales generated by AVID Medical, Inc. Excluding sales of custom procedure trays, Medical Action’s net sales for the twelve months ended March 31, 2011 were $281,026,000 representing a decline of $9,120,000 from the comparable prior year period. “We have substantially completed the integration of AVID Medical, Inc. during the fourth quarter,” said Paul D. Meringolo. “Our management team is focused on growing sales across each of our product lines, improving operational efficiencies and enhancing our product and service offerings. Our results of operations during the year were adversely effected by rising raw material costs and one time expenses relating to acquisition transaction costs and weather-related water damage at one of our manufacturing facilities,” Meringolo said. “We believe that raw material costs, particularly resin and cotton, will continue to influence our gross margins in the near term. We have responded to rising raw material costs by implementing price increases where commercially practical and managing our operating expenses.”