EXPLANATORY NOTE: This press release amends SRI Surgical's press release originally issued on Monday, May 5, 2008, to correct a typographical error in the Condensed Statements of Operations. The corrected Condensed Statements of Operations, revising the amount of the income tax benefit for the first quarter of 2008 from $530,000 to $52,000, is attached to this press release. The reported net loss was correct in the originally issued press release.
TAMPA, Fla., May 7, 2008 (PRIME NEWSWIRE) -- SRI/Surgical Express, Inc. (Nasdaq:STRC), a leading provider of reusable surgical device reprocessing services supporting the healthcare industry, today announced financial results for the first quarter ended March 31, 2008.
For the first quarter of 2008, SRI Surgical reported total revenue of $23,968,000, an increase of $591,000 from the first quarter of 2007. The net loss for the first quarter of 2008 was $1,294,000 or $0.20 per basic and diluted common share compared to a net loss of $589,000, or $0.09 per basic and diluted common share reported for the first quarter of 2007. The first quarter 2008 net loss included a reserve valuation allowance of $468,000, or $0.07 per common share, for deferred tax assets.
Gerald Woodard, Chief Executive Officer, said, "Although we have faced challenges in the quarter, I believe we are making the right adjustments to our sales force and the account management and operations teams to support a new future for the company."
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.
SRI/SURGICAL EXPRESS, INC.
Condensed Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2008 2007
---- ----
Revenues $ 23,968 $ 23,377
Cost of revenues 18,925 18,008
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Gross profit 5,043 5,369
Distribution expenses 1,758 1,571
Selling and administrative expenses 4,450 4,351
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Loss from operations (1,165) (553)
Interest expense 275 333
Other income (94) --
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Loss before income taxes (1,346) (886)
Income tax benefit (52) (297)
-------- --------
Net loss $ (1,294) $ (589)
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Basic loss per common share $ (0.20) $ (0.09)
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Weighted average common
shares outstanding, basic 6,391 6,357
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Diluted loss per common share $ (0.20) $ (0.09)
Weighted average common shares ======== ========
outstanding, diluted 6,391 6,357
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SRI/SURGICAL EXPRESS, INC.
Condensed Balance Sheets
(In thousands)
As of As of
March 31, December 31,
2008 2007
------------ ------------
(unaudited)
Cash and cash equivalents $ 524 $ 656
Accounts receivable, net 12,990 11,613
Inventories, net 6,531 6,159
Prepaid expenses and other assets 2,002 2,847
Reusable surgical products, net 19,719 19,416
Property, plant and equipment, net 30,816 31,277
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Total assets $ 72,582 $ 71,968
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Notes payable $ 4,030 $ 2,493
Accounts payable 8,817 7,984
Accrued expenses 5,055 5,464
Mortgage payable 4,226 4,286
Bonds payable 6,895 7,060
Deferred tax liability, net -- 55
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Total liabilities 29,023 27,342
Shareholders' equity 43,559 44,626
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Total liabilities and
shareholders' equity $ 72,582 $ 71,968
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