Advanced Medical Institute Inc. Announces Results For Quarter and Half Year Ended December 31, 2007
Advanced Medical Institute Inc. (OTCBB:AVMD) (AMI), a leading provider of treatment for Erectile Dysfunction and Premature Ejaculation in Australia and New Zealand, has announced results for the fiscal quarter and half year ended December 31, 2007. All figures are in U.S. Dollars.
For the six months ended December 31, 2007, as compared to the same period in 2006:
* Total gross revenue increased 19.9% to $24,376,126 compared with gross revenue of $20,322,223 in the prior corresponding period. Revenue from its Erectile Dysfunction treatments increased 37.3% to $11,024,027, revenue from its Premature Ejaculation treatments increased 2.9% to $11,379,997 and revenue from its Prostate treatments increased 69.8% to $1,193,716.
* Unearned revenue increased by $239,568 to $5,340,856 during the six month period.
* Income before tax was $1,440,447 compared with $1,467,426 in the prior corresponding period. The current half year results include non-cash patent amortization expenses of $740,631 whereas the results in the prior corresponding period only included non-cash patent amortization expenses of $445,206. As a consequence, income before tax and before patent amortization expenses increased 14% to $2,181,078 compared to $1,912,632 in the prior corresponding period.
* Net income after tax was $685,194 compared with $637,711 in the prior corresponding period. The after tax impact of non-cash patent amortization expenses in the current period was $518,441 compared to $311,644 in the prior corresponding period.
For the three months ended December 31, 2007, as compared to the same period in 2006:
* Total gross revenue increased 32.8% to $13,167,619 compared with gross revenue of $9,918,553 in the prior corresponding period. Revenue from its Premature Ejaculation treatment programs increased 7.5% to $5,694,511, revenue from its Erectile Dysfunction treatment programs increased 59.7% to $6,451,475 and revenue from its Prostate treatments increased 106.1% to $610,530. Quarterly revenue in the current period increased 17.5% compared with gross revenue of $11,208,507 in the first quarter despite the business being closed for a week between Christmas and the end of the year.
* Unearned revenue increased by $128,613 to $5,340,856 during the three month period compared with an increase of $472,944 to $4,899,974 during the same period a year ago.
* Net income before tax increased 166.3% to $1,291,774 compared to $485,132 in the prior corresponding period. The current quarterly results include non-cash patent amortization expenses of $387,570 whereas the results in the prior corresponding period only included non-cash patent amortization expenses of $318,571. As a consequence, income before tax and before patent amortization expenses was $1,679,344 an increase of 109% on the prior corresponding period.
* Net income after tax was $746,731 compared with $96,020 in the prior corresponding period and compared with net income after tax of ($61,537) in the first quarter.
As at December 31, 2007, as compared to December 31, 2006:
* Cash and cash equivalents increased to $1,901,152 from $606,298.
* Total assets increased to $47,050,689 from $43,156,040.
* Total Stockholders Equity increased to $30,328,023 from $28,870,755.
“We are delighted with the results for the second quarter and first half year of fiscal 2008 as AVMD has experienced a significant return to profitability as well as gross revenue growth,” said Dr. Jacov Vaisman, founder, president, CEO and chairman of the board of AVMD. “In addition, the cash position and balance sheet of the Company has been significantly improved, while at the same time the principal amount of the secured loan made to the Company from ANZ Nominees has been reduced to AUD2.348 million as at February 11, 2008 from AUD3 million initially in September 2006 as a result of significant voluntary prepayments which have been made by the Company.”
“Our core Australian operations continue to experience significant revenue growth with modest growth in our PE treatments and very substantial growth in both our ED and prostate treatments,” continued Dr Vaisman.
“As previously announced, we have further reduced the level of our ongoing investment into our operations in Japan and China, the results of which are reflected in our three month results,” Dr. Vaisman concluded.
For more detailed information please see the attached table of results or refer to the Company’s Quarterly Report on Form 10-Q filed with the United States Securities and Exchange Commission on February 14, 2008.
About AMI
Advanced Medical Institute Inc., (OTCBB:AVMD), headquartered in Sydney, Australia, is a leading provider of treatment programs for erectile dysfunction and premature ejaculation in Australia and New Zealand. The Company operates more than 20 facilities in Australasia, China and Japan. AVMD has more than 280 employees, including 55 medical personnel and, since its inception, has provided treatment to more than 300,000 customers. Advanced Medical Institute and its predecessor companies began arranging treatment programs for Premature Ejaculation and Erectile Dysfunction patients in 1993. For more information, visit the company’s website at: http://www.avmd.com.au.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company’s operations and financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products and pricing; changes in consumer preferences and tastes or perceptions of health-related issues; effectiveness of advertising or market-spending programs; changes in laws and regulations; fluctuations in costs of production, foreign exchange and interest rates; and other factors as those discussed in the Company’s reports filed with the Securities and Exchange Commission from time to time.
ADVANCED MEDICAL INSTITUTE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Month Periods Ended Six Month Periods Ended
December 31, 2007
(Unaudited)
December 31, 2006
(Unaudited)
December 31, 2007
(Unaudited)
December 31, 2006
(Unaudited)
NET REVENUE $ 13,167,619 $ 9,918,553 $ 24,376,126 $ 20,322,223
COST OF REVENUE (2,806,273) (2,267,636) (5,418,456) (4,633,218)
GROSS PROFIT 10,361,346 7,650,917 18,957,670 15,689,005
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (9,015,693) (7,198,713) (17,421,304) (14,314,698)
OPERATING INCOME 1,345,653 452,204 1,536,366 1,374,307
OTHER INCOME AND (EXPENSE)
Rental income - 5,147 - 9,708
Bank interest 17,160 9,643 26,819 30,002
Management fee income 7,333 27,868 21,717 53,990
Other income 10,759 37,660 21,770 46,289
Interest expense (67,749) (62,050) (132,502) (64,355)
Minority interest (21,382) 14,660 (33,723) 17,485
TOTAL OTHER (EXPENSE) INCOME (53,879) 32,928 (95,919) 93,119
NET INCOME BEFORE INCOME TAXES 1,291,774 485,132 1,440,447 1,467,426
INCOME TAX EXPENSE (545,043) (389,112) (755,253) (829,715)
NET INCOME 746,731 96,020 685,194 637,711
Other Comprehensive item – Foreign currency translation (loss) income (256,659) 1,485,706 969,732 1,610,125
Net Comprehensive Income $ 490,072 $ 1,581,726 $ 1,654,926 $ 2,247,836
Earnings per common share, basic $0.01 $0.00 $0.01 $0.01
Weighted average number of shares, basic 53,507,450 53,507,450 53,507,450 47,186,478
The accompanying notes are an integral part of these unaudited financial statements.
Contacts
Doyle Corporate Pty Limited
Richard Doyle, +61 2 9640 5183
richard.doyle@aminet.com.au
