Vascular Solutions predicts continued positive cash flow

By Lisa Kerner

Charlotte, N.C., Oct. 23 - Vascular Solutions Inc. believes its working capital of $11.1 million at Sept. 30, along with a $5 million line of credit and anticipated cash from product sales, will be enough to meet the company's operating needs, capital requirements and thrombin supply costs, according to a 10-Q report filed with the Securities and Exchange Commission.

The company did not specify the length of time it expected to be able to operate.

In addition, Vascular Solutions does not have any other significant cash commitments related to supply agreements or for capital expenditures.

The company said it anticipates it will continue to experience positive cash flow. However, if the cash generated from operations is insufficient, the company may seek to raise additional funds through the sale of equity or debt securities, according to the filing.

Since its inception, Vascular Solutions has funded its operations through the issuance of equity securities. The company sold capital stock generating net proceeds of roughly $78.5 million through Sept. 30.

During the first nine months of 2006, Vascular Solutions used about $3.4 million of cash for operating activities, incurred capital expenditures of $1.3 million and generated $2.5 million of financing activities. The company said most of the capital expenditures were for leasehold improvements and upgraded manufacturing equipment.

The company has taken delivery of roughly $2.5 million of the $3.5 million of thrombin through its agreement with King Pharmaceuticals and expects to submit 2007 purchase orders at last year's thrombin prices.

Vascular Solutions is a medical device company located in Minneapolis.

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