Sharps Compliance (SMED) Tops Q2 EPS by 3c, Revenues Beat

Sharps Compliance (NASDAQ: SMED) reported Q2 EPS of $0.06, $0.03 better than the analyst estimate of $0.03. Revenue for the quarter came in at $14.6 million versus the consensus estimate of $12.11 million.

• Second quarter 2020 revenue of $14.6 million, an increase of 18% over prior year
• Gross margin improved to 33.5%
• Net income of $1 million, earnings per share of $0.06 and EBITDA of $1.5 million for the second quarter 2020
• Unused medications billings grew 72%
• Route-based billings increased 19%
• Billings increased in several key markets including Pharmaceutical Manufacturer at 170%, Professional at 14% and Home Health Care at 21%

David P. Tusa, President and Chief Executive Officer of Sharps, stated, “We’re seeing continued momentum as we move through 2020, with strong second quarter results reflecting record revenue and billings, enhanced gross margins and increased profitability. We delivered substantial growth across each of three key solutions - unused medication management, route-based and our traditional mailback offering. Additionally, we were very pleased with the strong growth in quarterly customer billings in the Pharmaceutical Manufacturer, Home Health Care and Professional markets. At December 31, 2019 we have an installed base of 4,500 collection receptacles for unused medications in retail as well as hospital pharmacies and long-term care, drug treatment and law enforcement facilities and customers have returned and we have processed over 45,000 inner liners."

Tusa added, “We believe the strong growth and improved profitability generated in the last three fiscal quarters is a direct result of our Company’s successful transformation from a medical waste mailback and flu business only company to a comprehensive solutions provider to the Healthcare-related and Retail markets. As further evidence of success, customer billings increased 36%, 32% and 24% for the second quarter, fiscal year to date and trailing twelve-month periods, respectively, without the impact of the flu related business. We are proud of our leadership position in the marketplace and are using our reputation for excellent service to drive more business.”

For earnings history and earnings-related data on Sharps Compliance (SMED) click here.

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