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SHARPS COMPLIANCE Sharps Compliance Reports Fiscal 2022 First Quarter Results October 27 , 2021 • First quarter revenue of $ 13.9 million increased 6 % from the prior year • Retail market billings increased 6 % for the quarter • Professional market billings grew 9 % compared to prior year first quarter • Unused medication revenue increased 11 % • Route - based customer locations increased 17 % to 16,600 ● Completed secondary offering for net proceeds of $ 17.0 million • Cash balance of $ 41.2 million at September 30 , 2021 • Recently announced acquisition of Affordable Medical Waste , a full - service , route - based provider of medical waste solutions in Indiana HOUSTON , Oct. 27 , 2021 ( GLOBE NEWSWIRE ) -- Sharps Compliance Corp. ( NASDAQ : SMED ) ( “ Sharps " or the " Company " ) , a leading full - service national provider of comprehensive waste management solutions including medical , pharmaceutical and hazardous , today reported financial results for the first quarter of fiscal 2022 , ended September 30 , 2021 . Revenue in the first quarter of fiscal 2022 grew 6 % to $ 13.9 million , compared to $ 13.2 million in the same prior year quarter . Customer billings of $ 12.7 million decreased 5 % compared to $ 13.4 million for the same prior year quarter . First quarter 2022 gross margin was 25 % , a decrease from gross margin of 28 % in the first quarter of 2021. Gross margin was negatively impacted in the current quarter by the effect of revenue recognition , where there was a higher proportion of immunization related mailbacks returned , with a lower gross margin upon return compared to immunization related mailbacks shipped , which generate a higher up front gross margin . On a normalized basis ( excluding the impact of revenue recognition ) , gross margin would have been 27 % . SG & A increased by approximately $ 0.4 million or 11 % to $ 4.2 million in the first quarter of fiscal 2022 , compared to the same prior year quarter . The increase in SG & A is related primarily to continued investment in sales and marketing and to a $ 0.2 million increase in the accrual of management incentive compensation . The Company reported an operating loss of $ 1.0 million in the first quarter of 2022 , compared to an operating loss of $ 0.4 million in the first quarter of 2021. Sharps recorded a net loss of $ 0.8 million , or ( $ 0.04 ) per basic and diluted share , in the first quarter of fiscal 2022 , as compared to a net loss of $ 0.3 million , or ( $ 0.02 ) per basic and diluted share in the first quarter of fiscal 2021. Sharps recorded an EBITDA loss of $ 0.4 million in the first quarter of fiscal 2022 compared to EBITDA of $ 0.1 million in the first quarter of fiscal 2021. ( See Reconciliation of Net Loss to EBITDA in the supplemental table included at the end of this release ) . On August 30 , 2021 , Sharps announced it closed an underwritten secondary offering of a total of 2,070,000 shares of its common stock at a public offering price of $ 8.65 per share including the exercise in full by the underwriter of its option to purchase 270,000 shares to cover over - allotments in connection with the offering . After the underwriting discount and before estimated offering expenses payable by the Company , Sharps received net proceeds of approximately $ 17.0 million . David P. Tusa , President and Chief Executive Officer of Sharps , stated , “ Our first quarter results are in line with our expectations reflecting slower immunization revenue for the September quarter versus the two preceding sequential quarters . To provide some context , in the March and June 2021 quarters , which to date represent the height of our COVID - 19 related mailback business , immunization billings were $ 27.9 million and generated $ 24.6 million in related mailback revenue . In the September 2021 quarter , immunization orders were $ 1.8 million and generated $ 3.1 million in mailback revenue consistent with the slower COVID - 19 immunization administration . Additionally , we faced a tough performance comparison to the prior year first quarter , when we experienced increased volume for our services and solutions related to COVID - 19 volumes generated in our Long - Term Care market and from labs performing COVID - 19 related testing . On a positive note , our route - based customer locations increased almost 17 % to 16,600 . Tusa added , " We were very pleased to see a return to growth for our unused medication solution offerings for the quarter of 11 % year - over - year and 31 % sequentially . We believe we will see continued growth in this offering in fiscal year 2022 as retail pharmacies and long - term care refocus on the proper and cost - effective disposal ultimate user unused medication . " Well before COVID - 19 , we began growing our infrastructure and route - based footprint to reach a larger portion of the small - to - medium quantity generator marketplace . As such , we currently service 37 states , or 80 % , of the US population with our route - based offering . We've methodically enhanced our route - based reach organically and are currently focused on strategic acquisitions . We are excited about our recently announced tuck - in acquisition of Affordable Medical Waste ( " AMW " ) , an Indiana - based full - service route - based provider of medical waste disposal services . This tuck - in acquisition extends our presence in the Midwest and significantly improves route density . The addition of AMW is consistent with our long - term growth strategy to complete complementary acquisitions , and we look forward to continuing to work our active pipeline of additional opportunities . " First Quarter Review Professional market billings increased 9 % to $ 4.5 million in the first quarter of fiscal 2022 as compared to $ 4.1 million in the first quarter of 2021. The growth in Professional market billings in the current quarter was offset by ( i ) about $ 0.1 million decrease in billings for route based services to lab customers related to COVID - 19 related volume decreases compared to last year and ( ii ) over $ 0.1 million lower billings for route based services to customers for hazardous waste activity that was delayed until the December 2021 quarter due to nationwide sporadic / temporary moratoriums on accepting hazardous waste streams destined for incineration . Retail market billings grew 6 % to $ 3.9 million in the first quarter of fiscal 2022 as compared to $ 3.6 million in the same prior year period . Within the retail market , immunization related orders grew 9 % to $ 1.8 million in the first quarter of fiscal 2022 compared to $ 1.6 million in the prior year .