ABMC Reports Third Quarter 2016 Results

American Bio Medica Corporation (OTCPK:ABMC) today announced financial results for the three and nine months ended September 30, 2016.

Chief Executive Officer Melissa A. Waterhouse stated, "We are continuing to take steps to halt the sales declines we have been experiencing for some time now but, admittedly organic growth in our industry is challenging. Additional product and service offerings and a reorganization and refocus of our sales and marketing department are underway. At the same time, we are reviewing other potential relationships that could enable ABMC to further broaden its product offerings and branch out into other markets."

Waterhouse continued, "Gross profits were negatively impacted in the third quarter of 2016. Our gross profit was 43.1% of net sales in the third quarter of 2016 compared to 48.2% in the third quarter of 2015. This decline is a direct result of less strip production in the third quarter 2016 when expenses to manufacture remained flat. We do not expect further significant declines in gross profits. And finally, from an operational perspective, we will continue to be fiscally conservative and keep expenses in line with revenues."

Financial Highlights
  • Net sales in the third quarter of 2016 were $1,417,000 compared to $1,590,000 in the third quarter of 2016, a decrease of 10.9%. Net sales in the nine months ended September 30, 2016 were $4,392,000 compared to net sales of $4,785,000 in the nine months ended September 30, 2015, a decrease of 8.2%.
  • Operating loss was $60,000 in the third quarter of 2016 compared to an operating income of $61,000 in the third quarter of 2015. Operating loss was $136,000 in the nine months ended September 30, 2016, compared to an operating loss of $80,000 in the nine months ended September 30, 2015.
  • Net loss was $88,000 in the third quarter 2016, compared to a net loss of $2,000 in the third quarter of 2015. Net loss was $130,000 in both the nine months ended September 30, 2016 and September 30, 2015.

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® tests 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, including but not limited to our ability to obtain marketing clearance on our product for our intended markets, 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, 2015, 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.
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,

September 30,

September 30,

September 30,
 

2016
   

2015
   

2016
   

2015
 
Net sales $ 1,417,000 $ 1,590,000 $ 4,392,000 $ 4,785,000
Cost of goods sold   806,000       823,000       2,441,000       2,543,000  
Gross profit   611,000       767,000       1,951,000       2,242,000  
 
Operating expenses:
Research and development 28,000 45,000 136,000 125,000
Selling and marketing 275,000 291,000 827,000 899,000
General and administrative   368,000       370,000       1,124,000       1,298,000  
Total operating expenses   671,000       706,000       2,087,000       2,322,000  
 
Operating income / (loss)   (60,000 )     61,000       (136,000 )     (80,000 )
 
Other income / (expense)   (27,000 )     (63,000 )     8,000       (50,000 )
 
Net loss before tax (87,000 ) (2,000 ) (128,000 ) (130,000 )
 
Income tax expense   (1,000 )     0       (2,000 )     0  
 
Net loss $ (88,000 )   $ (2,000 )   $ (130,000 )   $ (130,000 )
 
Basic & diluted loss per common share $ (0.00 )   $ (0.00 )   $ (0.01 )   $ (0.01 )
 
Weighted average shares outstanding - basic and diluted  

27,284,308
     

26,032,930
     

27,056,216
     

25,557,021
 
 
American Bio Medica Corporation
Condensed Balance Sheets
  September 30,   December 31,

2016

2015

(unaudited)

 
ASSETS
Current Assets
Cash and cash equivalents $ 221,000 $ 158,000
Accounts receivable, net of allowance for doubtful accounts of $50,000 at September 30, 2016 and December 31, 2015

721,000

672,000
Inventory, net of allowance of $495,000 at September 30, 2016 and $432,000 at December 31, 2015

1,556,000

1,746,000
Prepaid expenses and other current assets 61,000   40,000  
Total current assets 2,559,000 2,616,000
Property, plant and equipment, net 844,000 910,000
Patents, net 70,000 67,000
Other assets 21,000 14,000
Deferred finance costs - line of credit, net 55,000   79,000  
Total assets $ 3,549,000   $ 3,686,000  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable 305,000 373,000
Accrued expenses and other current liabilities 225,000 212,000
Wages payable 281,000 292,000
Line of credit 736,000 777,000
Current portion of long-term debt 75,000   75,000  
Total current liabilities 1,622,000 1,729,000
Other liabilities 19,000 38,000
Related party note 0 124,000
Long-term debt, net of current portion and deferred finance costs 730,000   834,000  
Total liabilities 2,371,000 2,725,000
COMMITMENTS AND CONTINGENCIES
Stockholders' Equity:
Common stock 285,000 260,000
Additional paid-in capital 20,979,000 20,656,000
Accumulated deficit (20,086,000 ) (19,955,000 )
Total stockholders' equity 1,178,000   961,000  
Total liabilities and stockholders' equity $ 3,549,000   $ 3,686,000  

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