Horizon Medical Products Reports Quarterly Results Ahead of Plan; Revenues, Gross Margin, EBITDA Ahead of Plan

Apr 26, 2001, 01:00 ET from Horizon Medical Products, Inc.

    ATLANTA, April 26 /PRNewswire/ -- HMP -- Horizon Medical Products, Inc.
 (Amex:   HMP) today reported that as a result of its broad program to
 restructure operations and maximize shareholder value begun last year, first-
 quarter sales were 5% above the Company's own projections, gross margins were
 6% better than anticipated, and earnings before interest, taxes, depreciation
 and amortization (EBITDA) were 52% ahead of the Company's internal plan.
     Marshall B. Hunt, HMP's Chairman and CEO, said, "We are very encouraged by
 our first-quarter 2001 results and the progress that we have made.  Total
 EBITDA during the quarter was approximately $1,725,000, representing our best
 operating performance since the same quarter last year."
     HMP said that this year's first-quarter results include costs associated
 with the Company's restructuring program and other steps taken to restore
 profitability, some of which have already been completed.  Revenue from the
 sale of HMP's Ideas for Medicine product line, announced earlier this month,
 will be reflected in this year's second quarter.
     For the quarter ended March 31, 2001, the Company reported a net loss of
 ($434,523), or ($0.03) per fully diluted share, compared with net income of
 $83,091, $0.01 per fully diluted share, in the year-ago period.  Net revenue
 fell 4% to $16.4 million, from revenue of $17.1 million in the year-ago
 period.  Fully diluted shares outstanding remained flat, at 13.4 million.
     Overall gross margin increased to 36.1% in the first quarter, compared
 with 35.3% a year ago.  The Company's first-quarter 2001 gross margin was
 approximately 54.4% on company-manufactured products, compared with 52.5% for
 the first quarter of 2000.  "We expect to continue these trends as we roll out
 our comprehensive line of higher-margin products, such as our vascular access
 ports based on our breakthrough Vortex(TM) Technology," Mr. Hunt said.
     "The first product to be launched as a part of this rollout, the
 Lifeport(R) VTX Titanium Port, went on sale April 1, after the quarter ended,"
 he added.  "Those sales are already ahead of plan."
     The Company next week plans to issue the results of an independent study
 by a leading healthcare consultant quantifying the potential benefit of
 Vortex(TM) Technology to health care costs, based on a clinical study whose
 favorable results were published last year by the Journal of Vascular Access
 Devices.
     Dick Redden, president and chief operating officer of The Osnos Group,
 which directed the six-month effort to redirect HMP, said the results of the
 Company's profit improvement plan, as reflected by the first quarter's
 performance, further suggests that HMP will succeed in its effort to maximize
 shareholder value by returning to profitability and increasing sales, overall
 margins and market share.
     "Earlier this week, we named Michael J. Mark as Chief Operating Officer,"
 he added.  "We are very excited about the contributions that he will make and
 the management expertise that he will add.  Mike will be key to the continued
 implementation of our plan and the success of the Company," Mr. Redden said.
 
 
                             HORIZON MEDICAL PRODUCTS, INC.
 
                                                     Three Months Ended
                                                         March 31,
                                                    2001              2000
                                                 (Unaudited)       (Unaudited)
      Results of Operations
      Net sales                                  $16,419,783       $17,099,203
      Cost of goods sold                          10,491,092        11,060,598
      Gross profit                                 5,928,691         6,038,605
      Selling, general and administrative
       expenses                                    5,133,259         4,676,760
        Operating income                             795,432         1,361,845
      Other income (expense)
        Interest expense                          (1,259,394)       (1,170,931)
        Other income                                  29,439            45,907
                                                  (1,229,955)       (1,125,024)
        (Loss) income before income taxes           (434,523)          236,821
      Income tax provision                                --          (153,730)
        Net (loss) income                          $(434,523)          $83,091
 
      Net (loss) income per share - basic
       and diluted                                    $(0.03)            $0.01
 
      Weighted average common shares
       outstanding - basic                        13,366,278        13,366,278
 
      Weighted average common shares
       outstanding - diluted                      13,366,278        13,371,063
 
 
                                                 March 31,        December 31,
                                                   2001              2000
                                                (Unaudited)
      Financial Condition
      Cash and cash equivalents                   $1,316,886          $537,954
      Total current assets                       $36,450,282       $38,233,119
      Total assets                               $79,419,987       $86,038,486
      Total current liabilities                  $57,355,351       $22,974,118
      Current portion of long-term debt          $47,269,457       $11,430,228
      Long-term debt, net of current
       portion                                       $74,765       $40,597,750
      Shareholders' equity                       $21,859,012       $22,332,060
 
 
     ABOUT HORIZON
     Horizon Medical Products, Inc., headquartered in Atlanta, is a specialty
 medical device company focused on manufacturing and marketing vascular access
 products.  The Company's oncology product lines include implantable ports,
 tunneled central venous catheters and stem-cell transplant catheters used
 primarily in cancer treatment protocols.  The Company also markets a complete
 line of acute and chronic dialysis catheters.
     Vortex(TM) Technology, which was introduced by Horizon Medical Products in
 March 2000, refers to the swirling blood flow produced by a uniquely rounded
 reservoir design and tangential outlet that virtually eliminates thrombosis,
 or the buildup of sludge from blood and drug byproducts, in the port
 reservoir, and reduces certain complications that require additional surgery.
 
     SAFE HARBOR:  Certain statements and information included herein may
 constitute "forward-looking statements" which are made pursuant to the safe
 harbor provisions of the Private Securities Litigation Reform Act of 1995.
 The forward-looking statements are based on current expectations and may be
 significantly impacted by certain risks and uncertainties described herein and
 various documents filed by the Company with the US Securities and Exchange
 Commission, including but not limited to the Company's Prospectus on Form S-1
 and the Company's Annual Report on Form 10-K for the year ended December 31,
 2000.  There can be no assurance that statements made in this press release
 relating to future events will be achieved.  The Company undertakes no
 obligation to update or revise forward-looking statements to reflect changed
 assumptions, the occurrence of unanticipated events or changes to future
 operating results over time.
 
     Editor's Note:  The Company invites the investment community, including
 shareholders and analysts, to participate in a teleconference review of its
 first quarter results on Thursday, April 26, 2001, at 12 NOON EST.  Phone
 (Domestic):  (800) 240-4186.  If you are unable to participate in the call a
 replay will be available through April 30th, 2001 by calling:  Phone
 (Domestic):  (800) 405-2236; Phone (International):  (303) 590-3000
 Passcode: 328248
 
     CONTACT:  Fred Biddle, Member of the Firm, Sitrick and Company,
 310-788-2850.
 
     CORPORATE WEBSITE:  http://www.hmpvascular.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X45314108
 
 

SOURCE Horizon Medical Products, Inc.
    ATLANTA, April 26 /PRNewswire/ -- HMP -- Horizon Medical Products, Inc.
 (Amex:   HMP) today reported that as a result of its broad program to
 restructure operations and maximize shareholder value begun last year, first-
 quarter sales were 5% above the Company's own projections, gross margins were
 6% better than anticipated, and earnings before interest, taxes, depreciation
 and amortization (EBITDA) were 52% ahead of the Company's internal plan.
     Marshall B. Hunt, HMP's Chairman and CEO, said, "We are very encouraged by
 our first-quarter 2001 results and the progress that we have made.  Total
 EBITDA during the quarter was approximately $1,725,000, representing our best
 operating performance since the same quarter last year."
     HMP said that this year's first-quarter results include costs associated
 with the Company's restructuring program and other steps taken to restore
 profitability, some of which have already been completed.  Revenue from the
 sale of HMP's Ideas for Medicine product line, announced earlier this month,
 will be reflected in this year's second quarter.
     For the quarter ended March 31, 2001, the Company reported a net loss of
 ($434,523), or ($0.03) per fully diluted share, compared with net income of
 $83,091, $0.01 per fully diluted share, in the year-ago period.  Net revenue
 fell 4% to $16.4 million, from revenue of $17.1 million in the year-ago
 period.  Fully diluted shares outstanding remained flat, at 13.4 million.
     Overall gross margin increased to 36.1% in the first quarter, compared
 with 35.3% a year ago.  The Company's first-quarter 2001 gross margin was
 approximately 54.4% on company-manufactured products, compared with 52.5% for
 the first quarter of 2000.  "We expect to continue these trends as we roll out
 our comprehensive line of higher-margin products, such as our vascular access
 ports based on our breakthrough Vortex(TM) Technology," Mr. Hunt said.
     "The first product to be launched as a part of this rollout, the
 Lifeport(R) VTX Titanium Port, went on sale April 1, after the quarter ended,"
 he added.  "Those sales are already ahead of plan."
     The Company next week plans to issue the results of an independent study
 by a leading healthcare consultant quantifying the potential benefit of
 Vortex(TM) Technology to health care costs, based on a clinical study whose
 favorable results were published last year by the Journal of Vascular Access
 Devices.
     Dick Redden, president and chief operating officer of The Osnos Group,
 which directed the six-month effort to redirect HMP, said the results of the
 Company's profit improvement plan, as reflected by the first quarter's
 performance, further suggests that HMP will succeed in its effort to maximize
 shareholder value by returning to profitability and increasing sales, overall
 margins and market share.
     "Earlier this week, we named Michael J. Mark as Chief Operating Officer,"
 he added.  "We are very excited about the contributions that he will make and
 the management expertise that he will add.  Mike will be key to the continued
 implementation of our plan and the success of the Company," Mr. Redden said.
 
 
                             HORIZON MEDICAL PRODUCTS, INC.
 
                                                     Three Months Ended
                                                         March 31,
                                                    2001              2000
                                                 (Unaudited)       (Unaudited)
      Results of Operations
      Net sales                                  $16,419,783       $17,099,203
      Cost of goods sold                          10,491,092        11,060,598
      Gross profit                                 5,928,691         6,038,605
      Selling, general and administrative
       expenses                                    5,133,259         4,676,760
        Operating income                             795,432         1,361,845
      Other income (expense)
        Interest expense                          (1,259,394)       (1,170,931)
        Other income                                  29,439            45,907
                                                  (1,229,955)       (1,125,024)
        (Loss) income before income taxes           (434,523)          236,821
      Income tax provision                                --          (153,730)
        Net (loss) income                          $(434,523)          $83,091
 
      Net (loss) income per share - basic
       and diluted                                    $(0.03)            $0.01
 
      Weighted average common shares
       outstanding - basic                        13,366,278        13,366,278
 
      Weighted average common shares
       outstanding - diluted                      13,366,278        13,371,063
 
 
                                                 March 31,        December 31,
                                                   2001              2000
                                                (Unaudited)
      Financial Condition
      Cash and cash equivalents                   $1,316,886          $537,954
      Total current assets                       $36,450,282       $38,233,119
      Total assets                               $79,419,987       $86,038,486
      Total current liabilities                  $57,355,351       $22,974,118
      Current portion of long-term debt          $47,269,457       $11,430,228
      Long-term debt, net of current
       portion                                       $74,765       $40,597,750
      Shareholders' equity                       $21,859,012       $22,332,060
 
 
     ABOUT HORIZON
     Horizon Medical Products, Inc., headquartered in Atlanta, is a specialty
 medical device company focused on manufacturing and marketing vascular access
 products.  The Company's oncology product lines include implantable ports,
 tunneled central venous catheters and stem-cell transplant catheters used
 primarily in cancer treatment protocols.  The Company also markets a complete
 line of acute and chronic dialysis catheters.
     Vortex(TM) Technology, which was introduced by Horizon Medical Products in
 March 2000, refers to the swirling blood flow produced by a uniquely rounded
 reservoir design and tangential outlet that virtually eliminates thrombosis,
 or the buildup of sludge from blood and drug byproducts, in the port
 reservoir, and reduces certain complications that require additional surgery.
 
     SAFE HARBOR:  Certain statements and information included herein may
 constitute "forward-looking statements" which are made pursuant to the safe
 harbor provisions of the Private Securities Litigation Reform Act of 1995.
 The forward-looking statements are based on current expectations and may be
 significantly impacted by certain risks and uncertainties described herein and
 various documents filed by the Company with the US Securities and Exchange
 Commission, including but not limited to the Company's Prospectus on Form S-1
 and the Company's Annual Report on Form 10-K for the year ended December 31,
 2000.  There can be no assurance that statements made in this press release
 relating to future events will be achieved.  The Company undertakes no
 obligation to update or revise forward-looking statements to reflect changed
 assumptions, the occurrence of unanticipated events or changes to future
 operating results over time.
 
     Editor's Note:  The Company invites the investment community, including
 shareholders and analysts, to participate in a teleconference review of its
 first quarter results on Thursday, April 26, 2001, at 12 NOON EST.  Phone
 (Domestic):  (800) 240-4186.  If you are unable to participate in the call a
 replay will be available through April 30th, 2001 by calling:  Phone
 (Domestic):  (800) 405-2236; Phone (International):  (303) 590-3000
 Passcode: 328248
 
     CONTACT:  Fred Biddle, Member of the Firm, Sitrick and Company,
 310-788-2850.
 
     CORPORATE WEBSITE:  http://www.hmpvascular.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X45314108
 
 SOURCE  Horizon Medical Products, Inc.